I just can’t think of a happy medium. If there was some kind of way to automate the process of verify that a flag was used in a legitimately manner and then refunded some of the power used back to the user maybe. That sounds like a very complex issue of trying solving. Even the bots that deal with plagiarism are not getting it correct enough to trust it.
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No matter what kind of changes are made or not made with regard to flagging, we need assigned moderators who have the power to undo any flag not adhering to clearly set guidelines. We've always needed that, imo, but how to implement moderation where a lot of sp isn't needed (mod accounts with little or no sp) is perhaps impossible.