depends what your grassing for. although one thing i have noticed is the whole "grass" attitude and culture thing is a very working class "fuck the system" belief.
now if your neighbour has left his bin out one day too long or he did 31 in a 30 then calling the feds is pathetic. wether you choose to call it grassing or not depends on your beliefs

Its just dealing with people, many minor issues should be dealt with by you personally as thats why we have a pair of balls hanging between our legs....
However, i dont see reporting serious criminals as grassing. In fact its your moral and civic duty to either report serious crime or sort the fuckers out because i cant see hardly ANY circumstances where the greater good would be served by not having serious criminals dealt with.
vigilante action is an acceptable alternative to reporting criminals to the police IMO but you have to do it properly and often a good vigilante beating of a scum bag sends a stronger message to the cuntface than getting arrested, released and an extra few hours to their community order which they disobey anyway!!
and yes i consider benefit fraud/dole scrounging/drug dealing serious crimes. it may be an ingrained part of culture and almost a way of life for the underclass but that doesnt make it acceptable.
otherwise if you dont report it/ do something about it then IMO you have NO right to whinge about the negative impact of the crime you failed to deal with.
just look at many poor areas/stereotypical council estates, if people grassed up the dealers, the benefit scroungers, burglers, scum etc then those estates would be far nicer places - FACT.