Sadly, I believe the way Steem voting power is structured, then it will likely lend itself to more abuse and bullying than it prevents.
It could be useful, however, if all downvote were of equal value, but then what's to stop bullies just creating a bunch of new accounts and using them to downvote as well.
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That's a great point! Someone with a large stake can inflict a TON of damage on someone - but if flagging was more equalized it could still have that negative consequence without being so extreme.
Yep. I think at a high level, it has benefits, particularly in the example you have provided with Mr Sleazeball, it just needs to be properly refined or it will just become another tool in the "wallet" measuring competitions we see happening here from time to time.