Seems to me this along with the problem of one or two rich in Steem Power being able to flag someone into the ground is a fundamental problem with the Steemit system which they will need to find a solution for.

The whole thing Bitcoin was solving, essentially, is the same sort of issue here. Where you didn't need people to cooperate or "trust" them . This will probably not be able to solved quite that elegantly but it will need to be approached in the same way. You have to assume people will try and game the system you can't expect people to just not exploit it and hope the problem will go away. You might as well say why bother with verifying Bitcoin transactions people should just not try and cheat anyone.

As far as the potentiality for censorship goes this alone is potentially worse than YouTube, since at least it is only You Tube that can make those decisions. In fact more dislikes actually could still be GOOD for you and people who knew this would say if you didnt like it still downvote the video! This is because the system didnt care if you didnt like it just that people were watching. Not here on Steemit.

I'm literally put off posting content in case it's too "controversial" it will anger someone with a powerful vote who decides to ruin all my hard work I put into it and that's assuming they decide to stop with just that one piece. It only needs one person and they can overrule a hundred or more others. It doesn't even need to be controversial, just not to their tastes. Seems to me all memes should not be considered for rewards at all to be consistent here and yet there's another whole external website just for Steemit memes!

I've seen people praising flagging Trevon James into the ground but they really shouldn't be so happy it was so easy to do that. Whose idea was it to decide you could only either upvote something or flag it which makes no distinction between reporting it for terrorism, child porn or you just didn't like it? It will only get worse the more Steemit starts taking more of the market from the reddit and Youtube type platforms.

It may take Steemit competition to show a different way, as well as actually potentially show they could be a real risk of taking market share from Steemit, to actually get the problem solved. I do think there's a solution, but clearly this whole aspect is a major flaw they didn't account for.