You make fair points, but, just think about how many people have left that could have been great additions to Steemit, all because somebody decided he had to flag them, that is the question are these whales who flag any better than the ones who up vote? I think they are worse, their flagging has not helped me make any money, it has just helped the few who are in these guilds etc, so what you are saying is true, but only for a small percentage of writers. Overall I think this flagging has been negative.
Now seeing as this isn't helping the minnows, because, frankly the dolphins vote for people whom they know (and the only people whose voting power benefited were dolphins, for minnows it raised their voting power from let's say 0.1 cents to 0.12 cents),most probably dolphins, should a dolphin now take it upon himself to flag posts who have too many dolphin votes?