My personal philosophy is-
taunting, teabagging, tapping guard, dancing, overkill (e.g. running all the way across the screen after a knockback KO and 2King), etc., etc...
is OK when you're at a tournament. Especially so the more people are watching, especially so if your match is being streamed.
It's a tactical decision then, to enrage your opponent and prevent them from thinking. Also, you run the risk of your opponent physically reaching over and knocking you the %^&* out so it's a balanced maneuver. No patch needed.
Online, where you don't know people, where nothing is on the line, which is only supposed to be for training and matchup experience because of the inherent flaws... Doing it online is just disrespectful. There's no need for that.
The taunts in DOA can't even be cancelled and must progress through the full animation (unlike other games, where taunts can be used as bait or to make the opponent flinch) so... literally their only purpose is disrespect.
Now like I said before, don't get me wrong- in tournament, disrespect is good! If you respect your opponent too much they might run all over you. You can lose easily by "being nice".
But online? We're all friends (or at least civilized people), we're here to have fun, it's online casuals. Why do you have to antagonize people you don't know a thousand miles away?
That being said when people do it I just shrug it off. Some people don't see it as disrespect, and even if they do, it just means that if I'm on the receiving end of it I need to get better.
