they are few.

Then society itself is comprised of worthless people, because 99.99% of those onboarded were flagged off.

Taxation is theft. It does have application against plagiarism, but you note it doesn't affect spammers and scammers, because they aren't after author rewards anyway. However, to be popular, to conquer the social media space, as Hive should have the ability to do, Hive needs to accommodate 99.99% of society, and instead it does the reverse.

When people do stupid shit flag them. If they're not doing stupid shit don't flag them. That's fair enough and won't drive people from the platform to rage at everyone they will listen, as ~1M ex-blockchain bloggers have, and some still are.

The real reason for flagging people off the platform is political power to rule Hive. Wider distribution of the token dissolves the stake of the whales that to this day maintain >50% and <51% of the stake voting for witnesses. Also, a growing platform attracts investors, and there are investors that could spend the entire market cap of Hive on lunch and never notice it. They would eat our little whales alive and rule Hive like Sun does Steem.

Plutocracy causes centralization of stake. Worse, centralization of stake causes plutocracy. There needs to be some veto power over stake or the DHF will continue to bleed into phat wallets and Hive will eventually wither and die because it will never grow, and the whales will move on or die, leaving a withered husk of Hive in their wake.