Flagging to reduce payout is a bad thing. I don't like how much many people make. Yet it doesn't hurt me. It could be seen as if they didn't get that vote it might have gone to someone like me instead. Yet voting against it doesn't actually make that happen.

There is no reason to flag things like that. Part of the incentive of getting steem power is that I can increase how much I can reward people. Where does that incentive go if people can take the power of my steem power away?

There is no reason. I've said before. I don't like Caviar. Some people do. I don't go to the store and stick a flag on Caviar so people can buy it for less.

I've heard about the limited steem pool of reward. Yet when a post is down voted how does that then become paid to other people? You've actually diminished a vote due to voting power %.

Perceptions also do matter. This is a really bad PR thing. I know a half dozen people that I wanted to come to steemit.com and they won't come due to this one reason. I've tried to explain that it doesn't happen very often yet. They still are angry about it. If you have time I went into the flag in some detail in this post the other day.

This being in beta I do see it as a flaw we can address.