Agreeing with @themarkymark and @fbslo, flags are a way to control the reward pool two way. Sometimes you have the power to undo one bad action but not the power to compensate it with thousands of good actions.

This is an old argument and the discussion result is always the same. Flags are here for a reason and the money is only yours after 7 days. The whole point of it is to create a validation of all posts and that needs both forces up and down.

I am more in favor of a separate downvote pool that would promote using them. Would remove some of the stigma and make people flag bad content without loosing money.