I agree with your point about the site being a bad idea, so maybe your first point was tongue-in-cheek. But displaying reported child pornography to people outside of your controlled environment? Not a great idea...
Just pricing in an externality. If that's a disgusting and shocking way to deal with this, then it doesn't follow to me that paying a little money to folks to do it makes it anywhere near OK.
So yeah, it was tongue in cheek, with a side of reductio.
No the concern with distributing likely child pornography and snuff films to users is that the whole point of moderation is to STOP distributing that. You want to have it moderated in as controlled an environment as possible. I'm all for not subjecting more people to it than necessary, but it should at least be people who explicitly consent and are trained and provided with the necessary resources.
