Putting so much emphazis on "feeling" as if though it was a thought, in general makes me less inclined to read comments. However I do see what you mean by doesn't "negate" and perhaps that could be one use of the downvote. On the other hand, I might suggest it should be the other way around.
Maybe the downvote should adjust payout as is done today, but the flag should have no monetary value attached to it.
That way, payments could be adjusted with regular votes and the flag could be kept as a separate mechanism (just to show if someone thought it was simple spam/harrasment) as there would not be the same incentive to flag simply in order to bring down the payments of others.