Well presented, but I have a feeling that nothing will come of it. For as long as the top earners are hungry for huge earnings, they have no incentive to make any changes.
We can see that among animals altruism is a positive force, contributing to their survival, but we don't WANT to see it also applies to us.

As for downflagging, you did not address certain problems with flagging does help us limit. For instance, plagiarism and scamming.

To me, scamming is not as much of a problem as I never reply to them so it seems not many hit on me. Sometimes, if I have a feel this person is acting out of ignorance, I'll spend time on them, without rewarding them. I end up feeling good when they learn and try to improve.

However, what if the owner of the post were to havethe right to delete any comments they do not like. The person deleted should not have the ability to return to that post for at least seven days. However, the deletion should be the only discipline, no flagging, no loss of income.
As for plagiarism. It should be reported to a group of volunteers and only the approved group be allowed to remove income (fully or partly, at their discretion). Those punished in this way must have the right of appeal - for instance, when the plagiarism is from an article the poster wrote originally.

Anyway, good luck and thanks for caring enough to try and find a solution.