I agree with some of what you said there. But in the end. It's a persons stake. If someone wants to spend their money and flag you. Then that's well within their right to do.

I've said it before that there should be a Downvote Button. If you do not like a post. You should be able to downvote the post and bury it at the bottom. And flags would be reserved for posts that violate T&C.

However as it stands. It's the only recourse someone has if they do not like your content. Don't be upset with people for flagging. Make better content. Or petition Steemit to add the downvote button.