Some amount of increased moderation is probably fine, but not until they've fixed the game design issues and know what they're actually working with. They've shown that they don't know or don't care about the mechanics that prompt people to be toxic, though.
Toxicity happens when people are trying to go fast or accomplish something, and others are stopping them. This happens in M+, but leveling dungeons are also fucking terrible. Either people aren't talking at all, or they're flaming and votekicking someone that's new or just trying to chill. They could try all sorts of things here, but they've done absolutely nothing. Why not add a separate "speedrun" queue and let the assholes self-select into it? Why not remove the timer from M+ and add a different axis of difficulty? Try something, see how it affects things.