That is partially true, but it is no worse than having a few people that can obliterate anyone at anytime. Plus if you keep reading I put in controls so that Flags (Downvotes) can be offset by Upvotes to ensure the system doesn't get abused like it does now.
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I think it would be worse. In theory (obviously there are exceptions) but the people with the largest stake have motivation to act in the best interest of the platform. They are putting their money where their mouth is so to speak, at least they have some skin in the game. I prefer that compared to a botnet owner with 500 brand spanking new rep 25 accounts getting to decide things.