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Something like this is enough if implemented and there are really times that you mistakenly type the comment you wanted to add on the report and because it has been passed anymore there's nothing you can do about it, so in the end, it will be marked as bad.
It shouldn't be marked at all. Someone cancel report and it disappear, that is whole idea. To avoid abuse (for example canceling reports which remained unhandled because they are "soft bad" or "for any other reason" and then reporting them again) countdown could be set to, I don't know, 1 day and after that you can't cancel it any more.
I don't think a countdown will be a thing I guess it will stay there as long as it hasn't been handled yet by a mod if there's a countdown to it I guess that should be the unhandled report but it will be the vice versa that if an unhandled report hasn't been handled yet for a week you can delete that report. Though the latter suggestion seems vague since reports are piling up and the report history page doesn't include all of your reports but if there's a link to it then it will be nice to delete or cancel unhandled reports because I don't think that it will be handled anymore by mods especially if a year has already passed.
Elaborate this using example from this topic you obviously didn't read
He's caring for his quantity post for a penny.