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Stakeholders are allowed to use their stake however they want. If someone is providing a service like randowhale, and by misusing their stake they are not honoring the terms of their service, then people should not use their service.

Yeah, this singular issue will keep steemit from going mainstream, imo. People are purposely flagging at the last minute and the witnesses are also doing it, condoning it or, like yourself, saying oh well. In this case, there is blatant evidence showing the scam and the accounts benefiting. Thats why there's so much drama about that now and the guy is crying he's the victim. It's good the community has fought back too. Steemit is just going to be a battle ground of recip flaggers. But hey, virtual misdeeds can still have real world consequences too.