I think there needs to be a "flag committee", where a user can appeal malicious flag abuse. The committee's judges should consistently turn-over and the whole community should serve short tenures on the board.
Otherwise stagnation will occur.
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I have been hearing that idea being tossed around, but I'm not sure about that. It may be preferable to what we have now, but I'm afraid it too will prove to be corruptible and the cycle will repeat itself yet again.