It is correct. But that money doesn't just benefit Bernie, it can be redistributed to all members of Steemit. However, since this war is going on, it is definitely more likely to benefit him than others.

The reason people flag him is because of the #1 reason to flag:

Many people think he is making far too much money for the content he provides, and they want this money to be redistributed amongst others and not all going to @haejin. It's a fair enough reason, because single whales like this really ruin the platform.