Very true, Steem is designed to oppress the opinion of the small stake holders even if it wasn’t intended to be like this. Flagging should not be coupled with proof-of-stake but get a hivemind solution instead. But on the other hand it looks like the system as it is works actually pretty well. I don’t know what to think about it.
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It's a tough subject for sure.
Most of them can be exploited or just don't have a good method of implementation. There's no easy solution for the flagging problem although @aggroed and a lot of others have suggested some very cool changes.
Very complex stuff.