steemit.com is the part that decides whether to display something or hide it.
Since it is just code on a webserver, you can change it.
Tomorrow, if steemit.com decided to not hide posts, they could set it so that it doesn't.
Steemit.com should have a way to set settings , like the do with NSFW tags.
You should be able to say that you always want to be able to see the posts from people that you follow, despite any flagging
It would probably also be nice if you could tell steemit.com to show you all of the flagged posts.
This is just like the steemed / resteemed tab that we have been asking for and should be almost finished now.
I'd love to see a resteemed tab - I hate having the resteems in my feed.
But they don't do this stuff fast - I was writing about that 10 months ago too!
As far as hiding the posts - if the default was not to, that could work - but we know the default will be to hide them and 95% of people won't bother to change that, so censored would become 95% censored.
A resteemed tab is an excellent idea!