During the time we had no 'free' downvotes @haejin (as my example here) exploited the rewards pool. When they got introduced he stopped. Now he is exploiting the rewards pool again.
For me it is obvious that farming like that won't be combatted if downvotes cost something.

I read your full answer. You wrote the same as I stated, too: free flags are used mainly by whales because all others fear retaliation. That's why I am in favour to implement arbitors/committees of users to protect people from retaliation and flgas given just for personal reasons.