I had a recent experience where i was flagged but imo it wasnt justified this "person" totally misunderstood the situation and flagging is a perspective based something.
Flagging creates more flagging, so when looking at the option to flagg someone's post/comment, the problem with that is, someone that gets flagged. Could become so angry that he or she will make multiple accounts and totally destroy someone's reputation and that person would have worked on for his/her profile for many many months and it could all be gone in a week.
Revenge is sweet they say but it really isn't.
The Flagging system would be good if the amount of accounts allowed to be made per IP would be (1). But right now with a system that allows multiple accounts and even Anon accounts it can create a absolute bloodbath.
So i understand why Steemians don't do it they understand the non productivity of the flagging system at this time.
It can work and it should work but it needs some adjusting.