@erroneous-logic's reply said most of what I wanted to say. The rest I put in a reply to @laconicflow.

This word "censorship" is being used a lot, but it rubs me the wrong way because, IMO, it implies an "authority" which is making the content completely unavailable. This simply isn't the case here because everything hidden can be shown with a simple click of a "Show" button. The content wasn't "censored" in the sense of it being made unavailable (which, to me, is a core aspect of "real" censorship). Additionally, as I mentioned to @laconicflow, people are free to build their own interface by forking the Steemit.com code which doesn't hide anything at all, regardless of how many flags it has.

Those are my opinions on the topic, anyway. I see Steemit's approach as being vastly superior not because it's "decentralized censorship" but more so because it's not really censorship at all (IMO).