Honestly the flags wrecking payout is really no deterrent to people being actually abusive. I think there ought to be more checks and balances somehow, but I understand that's very difficult to do. Take some abusive troll, what do they care that they're not gonna get a payout for their vile shitposts? They love the fact that people get riled up enough to react at all. I mean there's people on Reddit who make it a challenge to get maximum negative karma.
But indeed tag spamming is annoying, and often not even the fault of the users themselves. It's just a flaw of the tag system in general, which is why I don't like Instagram so much either. Over there you'll have the same problem of looking through different tags only to find the same attention whores posting their selfies and milkshakes and whatnot, even though you're in a tag about something completely different.