Just to clarify: witnesses has nothing to do with upvote/downvote drama. Even when casting a vote, witnesses are in the same position as every other (i.e. non-witness) user of the Steem platform. Of course usually witnesses has SP at levels above the average, but even in such case as mine (I've never powered down my witness account, covering all costs using external sources) my SP is negligible compared to involved parties)
Old but not obsolete: Fun with Flags.
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Just an innocent question:
As you said, a user may get flagged due to these reasons also-
Lets ponder on a scenario where someone is betting against steem and is so powerful that he just get bots flagging every genuine blogger. Everyone is in chaos, the value of steem tanks.
What now?
NOTE: I believe we will need to come up with a game theory consistent, consensus driven grievance mechanism or watch the doomsday.
To act against Steem in that way Malice would have to control 50% Steem Power (locked in for 13 weeks) making him the biggest loser of such stupid actions.