I agree that something needs to be changed. I'm also sure Dan & Ned are aware of the current systems flaws but likely have not had time to address it. Steem's progress was likely set back by months due to the hack and the Dev team having to deal with that and be even more careful about the new solutions they introduced.
You may or may not be aware of my own struggle with certain flagging abusers, but I appreciate you bringing this up and offering a solution. Really good article!
Thanks for taking the time to read it; I'm glad you found value in it! My hope is the right people on the dev team will see this when they get around to fixing the flaws.