There have always been flags, just not a separate pool for them. Which makes me wonder why that separate pool was created. Were there too few flags? I didn't see a single downvote from any larger stake holders being handed out hardly at all prior to, except during various wars like with Grumpy Cat and Belly Rub. I didn't see any bot police then, which again begs the question, why was a separate downvote pool created?
I think a better solution would have been to eliminate bot usage from the protocols altogether so all the big vote sellers are forced to handle their books and customers manually. Not really possible perhaps at this stage, so instead, maybe the bot owners could take responsibility and have a review board for the things people are bidding for before a vote goes out? Blacklists are great, but easily manipulated and steered around. I'm sure other solutions are there too, but little dolphins don't get heard very often by closed whale pods.
The main thing is, and you guys do justify your flags - most don't - is a downvote has a negative connotation and incites bad publicity. I know people want to come to STEEM, but they won't the way it is right now.