I can understand the desire to have the community police itself - it solves numerous problems, from not needing a support team to manage the huge task, through to absolving the corporation of having to deal with the grief of it all. My initial suggestion, in the spirit of the project, was to expand steemit to have an area where all flagged posts are visible to whoever wants to look - ensuring that the community can gain visibility of flagging activity, rather than having smaller users with no voice get crushed with no repercussions. I will be creating this at steemocean.com in the near future as a starting point.
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Perfect idea, like at the top right next to trending, a flagged category! Kill the dithering, and post hiding. Adding a flagged icon in the feed on the post when something gets flagged, and put it in the flagged category. People could go to that section and manually curate.
Yes, though I don't expect that the post hiding will end, it will at least give us a way of monitoring what is going on.