I like your view which does not fall aside from Steemit view (I think). And wanted to just comment on something you said that is quite interesting...
If it were up to me, ways and means would have to be found to contain 'flag wars' waged purely for personal motives. For example, a committee of respected users elected by the community and equipped with sufficient delegated STEEM power could be called in such cases and then decide whether the flags were justified or not.
This is basically a DAO for me. Which would make lots of sense, to me.
So, elaborating on your idea... a pool of STEEM could be "formed" based on either the weight of how much people like about the DAO representatives. The POOL would not be owned by anyone specifically and it would be up to the "board" that represent and execute the "work" how to spend that POOL on downvoting "cases" (no matter the size, but I would imagine that bigger ones would tend to be more popular here). This would be something like a justice council for complex schemes of downvoting within the community. Just like a court... of some sort... But one that gets decided by the community.
Does it make any sense for you guys?