I got as far as the 2nd paragraph, then realized I had to clarify something before reading the rest and commenting further:
"The real goal is to eliminate "punishment" because no one likes to be singled out for punishment. Punishment also "divides" us and many people perceive it as an act of violence against one individual."

Is it the case that any solutions in regard to the upvote/downvote/flag conundrum have to be in accordance to this anarcho-Capitalist ideology? If so I then I believe it is very likely insoluble. Is Steemit to be run along these very niche ideological lines? I'm asking because if we want Steemit to go mainstream then you have a very serious problem. If so, how broad is your concept of "punishment"?. Does it cover things such as returning ill gotten gains from gaming the system and such like? If so then to all those who say "Tax is theft" are you OK with "Theft is Tax" because those that thieve are a tax on others.