I wholly support system reform, and I will upvote and make suggestions until I am out of upvotes and suggestions for the improvement of the chat system.
That said, for the time being the system is what it is, for better or for worse.
There are very few guidelines for chat; this is what the FAQ states:
Do I have to be nice?
Yes. We expect community members to treat each other with respect … even when they don't deserve it.
If you see an inappropriate, spam, or offensive chat message, please use the hover menu at the far right of each chat message to flag it. This will draw it to the attention of the community moderators.
We all have a responsibility to act mature and intelligent here.
As the people posting messages we are responsible for ensuring that our content is work-safe, appropriate and respectful to others. Everything posted in chat is publicly visible and google indexed, as "permanently" as can be on the internet.
As the people flagging messages we have a responsibility to use our flags appropriately. At this point in the system, sending a flag means that you earnestly believe the content should be removed immediately, and that the user deserves suspension for what was posted. If there are other solutions that seem appropriate, we should be aware of those options and use them where appropriate.
As the people responding to flags we have a responsibility to understand the context and judge the post on its merits. This is the responsibility of everyone who has been entrusted by the community with these powers, by reputation or by election.
Chat should be a welcoming, open place for discussion and fun. Let's not let this devolve into either a place where everyone is paranoid to post (because of the off chance someone will be offended) or where intolerance, offensive material, and disrespect are commonplace and encouraged.