Yes, if it's effecting the game. However I only report them for bad connection, not cheating. It's pretty easy to tell a lag switcher from someone with a bad connection...anyone who automatically assumes that every red bar is lag switching is a -blam!-ing moron.
Here's how I rationalize it. If you buy a PC game, they give you specific system requirements that your comp must have to run the game properly. If you don't meet them, you won't be able to run the game. The developers aren't going to dumb down their game to cater to the minority of players that don't meet the reqs. You need to have a certain quality of Internet to properly run any game with online content, in this case destiny, and you have no right to interfere with others gaming experience because you don't have good enough internet. Sorry, if you play video games online you should know that good Internet is important....sorry if that's condescending, it's just my opinion.
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What if you only lag on Destiny servers?
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Or PVP at certain times of day? I'm only ever go to yellow bar during the day and fine in PVE, PvP at night is a pain. I start off green then go red and yellow during PVP..