In it's current form yeah it's very chaotic and unchecked. Personally I think the flagging system needs a huge change to become legitimately powerful. I've written a lot about how we should have trials by jury here and start acting more like a mini-government.
Crypto is in the Wild West phase, things should sort themselves out in the years to come. I simply keep telling myself that Steem has only been around for two years. Where will it be in the next two years?