This post was greatly needed! I agree with your guidelines and flagging a post should be to reduce content that has the affect of creating a poor user experience and keep people from using steemit. Moderating this content should be rewarded, and at the same time people who have been flagged a certain number of times should be able to have the content reviewed by a voted witness and deemed whether or not it has truly been spamming or not following proper posting guidelines. If so maybe a suspension for x number of days could prevent further abuse. It's tricky to have a decentralized platform when it comes to people posting anything, but hopefully as is the case now people with the most voting power will vote down content accordingly.