First, I think their position isn't necessarily just that flags don't come with a comment you can flag back. My understanding is the worst kind of botting, self-voting, and circle jerking was being undertaken and because of the language barrier, had been for a while, until they were served a cease and desist flagging.
Secondly, I think that if you want a drop down for flags, you should want one for upvotes too. I agree flags are broken, but I am not sure a dropdown menu is the right fix. Maybe they should need to come with a comment, but then I'm hoist on my own petard, and upvotes should too.
Frankly, since I oppose automated voting for any reason, I actually could maybe live with that, as long as the comments either way weren't automated, but written by a person.
Lastly, I don't think folks undertake extortion for only stated reasons. I don't think they are simply interested in the specific fixes suggested, but seek more power out of avarice.
It's a political manouver, not just redressing grievances.
RE: Open letter to Justin Sun and the STEEM community