I like the idea of a Flag Review Council, so I'd implement something like that.
I think delegating downvoting to a Council elected by STEEM holders would be a step forward. On a platform like STEEM the role of Moderators (elected or otherwise) is as critical as that of Witnesses IMO.
I'd like to see downvoting limited to penalise things like plagiarism, where there is uniform consensus that it is detrimental to the platform. I think allowing downvoting to be the plaything for large STEEM holders, is proving unnecessarily problematic.