While I have a somewhat more optimistic view about Steemit than you do, your comments about flagging posts resonated with me. When I was brand new and just did my introduction post, I flagged someone who was obviously plagiarizing and being quite disruptive in general. I immediately got "revenge flagged", and while it didn't hurt me as I had higher reputation, it galls me to this day to see that big fat flag on my very first blog post and the payouts from votes I made on other people's comments were negated as I even got "comment chased". Due to that uncomfortable experience, I have refrained from ever flagging anyone else.
Regarding the upcoming economic changes, I think it will be good in the long run. Yes, it will be possible for The Powers That Be to dump more Steem even faster. Yes, that could crash the price even more. But hey, the sooner this whole process of cashing out and redistributing Steem to the small players who will gobble it up is complete, the better. I don't mind having that process accelerated. When the dust settles, I hope there will be a new and sizable emergent dolphin class, and that will be very healthy for the ecosystem.