Thanks for commenting, Insaneworks! Yes, this story is indeed inspired and directed towards the flag button here on Steemit. It really doesn't have much other effect than giving the trolls a weapon, and to give the rich the right to censorship for whatever reason they want. The story is meant as a warning. I strongly believe the flag button is a threat to the whole Steemit platform, as most of us have no interest in people flagging our posts, especially when the flags can take our income away, even for no reason at all.
About the other valley, there are other alternatives out there, and more will come for sure, although Steemit is as far as I know the first and the biggest. I've been publishing some links to my posts on Steemit and my wordpress site on Ong.social lately, which is a very interesting decentralised platform similar to Facebook where the users gets the payment for advertisements. It has a blog function as well although I still haven't really started with that. The bad news is that it has been down for several days now, probably because they are having trouble with the launching of their own cryptocurrency which should be up and running quite soon. Time will show who'll win, but Steemit would have a lot better chance if harassment weren't a part of the system.
You can also check out yours.org, although it does not generate crypto, people use bitcoin cash they have invested. Not the same, of course ;)