I guess I agree with it for small, petty things that don't really matter. As far as crimes go, it is one of the dumber things I have ever heard. Plenty of decent people let morons prevent them from doing the right thing, and said morons make life difficult for everyone else.
The NYTimes had an article recently about the reluctance of Hasidic communities to report child molestation to the police--and the Brooklyn DA's apparent reluctance to publicize the names of the accused molesters (in contrast to how molesters of other ethnicities are treated).
It was an interesting article--sorry, I don't have a link to it--and doubly interesting (to me) because of its parallel with the "snitches get stitches" mentality of other neighborhoods that are actually just a few blocks away. In each case, there's a reluctance to report crime to The Man.
Of course, in the case of the Orthodox Jews, failing to report offenders to the police meant that--like most child molesters--the perps committed crimes against children again and again.
I don't much care about reporting victimless crimes, one way or the other; but letting genuine bad guys stay free is just stupid.
With that long-winded preamble, I guess my answer to the actual question is: disagree.