I disagree. There is no Steemit Administration that handles these issues, nor should there be in my opinion. I left Facebook (or I'm trying to, as addicted as I am) precisely because they have an administration that decides what needs to be flagged and removed. Flagging serves a very legitimate purpose, and it should be from the users, not from a central agency with a singular vision.
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I don't know, I can see both sides of it. If it needs to be user-driven so be it, but I still think it needs to be an abuse system not a downvote system... regardless how lame the posts are to some, pay is usually commensurate with the amount of work involved to some degree. I think, once you earn it, you should not have to worry about going backwards because someone gets pissed off at you.
My point of concern with flagging of this nature is it effectively declares to other users who voted it up, "no, your subjective valuation of this content is wrong. Here, let me fix it for you." It's an astounding level of arrogance. You can couch it in whatever terms you want-reward reallocation or what have you-but that's ultimately what it translates to.
I completely agree with that sentiment.