This: "The flag should be used for the following:

Fraud or Plagiarism
Hate Speech or Internet Trolling
Intentional miscategorized content or Spam"

is no change. It is the same as it has been. Where is the part about one person taking away the reward garnered from hundreds of votes because of their self important opinion?

Reiterating an opinion often, does not make it fact.
I, personally, haven't talked to "most" people on Steemit, and don't know what they think. Indeed, how many is "most" people on Steemit? A very few, influential people on Steemit have expressed opinions geared toward justifying their use of the flag at a whim, but no changes have "gone through". Gone through what? The flag is confusing because it is only one action that unduly penalizes people when abused by people with too much power and not enough sense. Adding more reasons to use the flag will not make it less confusing.

Whose job is it to "clean up Steemit"? Batman (the rich guy), the Sheriff (the moral guy, who gets paid to)? Making Steemit the best we can falls to all of us to do, otherwise it will be just another den of oppression, and no one will want to be here.