Well, for one there are the types of profile names that are easily identified as "false" names, e.g. historical figures who do not live anymore or entities such as MLP- or rageface-characters (I already found the "FFFUUUU"-guy and the "Y U NO"-guy).
And then theres the case of legitimate-sounding fake names which are basically undetectable (if your name is Peter you can name yourself Frank. Who's going to spot it's fake except for friends who'd need to report you?)
And then there are nicknames. And I have no idea how they want to manage that.
Besides the fact that the Google community standards don't strictly prohibit the use of pseudonyms and the whole problem is therefor a little pointless in my eyes. And frustrating.
But as far as your question about the reporting goes, I think that's the way it works.
I'm from Germany, and yes, every fascism/Nazi/denounciation joke was already posted in my G+-Stream.