I don't agree with it. I do agree that bad drivers are a problem, but don't think this is the right solution.
First, your idea of a bad driver might be different than my idea of a bad driver. When it comes to laws (such as speeding, etc) things are pretty clear cut. If your doing 60 in a 55, you are breaking the law. When it comes to just being a bad driver, it will be tougher (if not impossible to enforce).
Besides, somebody told me a long time ago, it isn't a crime to be an asshole. I've had people tick me off, but there isn't a lot I can do if they aren't breaking the law.
This reporting of bad drivers is going to be a thorn in the police and public side. While dangerous drivers should be reported, bad driving isn't against the law. Your going to cops out looking for people who have committed no crime. And how do you know it isn't about bad driving. Lets say male and female are sitting at a traffic light together. Male smiles at female driver next to him, she flips him the bird. He doesn't care for this so he calls the police to report her as a bad driver and that she is driving recklessly. I see this now in regards to drunk driving. Car A cuts off Car B (yes its rude) so driver of Car B calls the police to say that Car is is driving drunk.
I admire the efforts of getting bad drivers off the road until they are educated enough to drive properly, however, this isn't the way to do it.