Just because something is possible does not make it acceptable, but we each have the option to take action, if we dare. The first reason given on the flagging popup is 'disagreement on rewards', so they are encouraging me to do this. The main point of voting/flagging is to distribute the rewards and we can adjust them down to make more available for others. $1000 for a basic blog seems excessive when artists and musicians can earn cents for many hours of their work.
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Totally agree. Everything else is ethical in nature.