Steemit is not censorship proof but STEEM is. Steemit is just an application that is built on top of STEEM. Even if you censor something by flagging it, you can still see it in the blockchain. https://steemd.com is another way to look at the posts in here.
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I'm discussing the resilience of Steemit, not Steem, right?
So you are saying that it's not a problem that authors here will have their reputation destroyed, and all their articles will be flagged as spam and hard to read. Now imagine a whole network of posts, which are flagged. Reputation becomes meaningless (it pretty much is, at the moment, btw) and all posts and their comments are collapsed and greyed out.
And if Ned and Dan have to intervene, isn't that censorship of the censorship? In other words, wouldn't the idea of a free and censorship proof media have failed at this point?