Your comment disregards that human nature is what it is, and your observation that human nature causes them to fly flags less than optimally does not support in any way that availing them of more flags will fix things.

It is going to make them worse, and dramatically so. Bernie is flagging here, and extorting everyone that sees his comment with the threat of retaliation if they engage with the flagged party. This is not news to you, I suspect, so you're not living up to your words here:

"We should also take actions against those that are misusing them."

No one is very interested in drawing flags from one of the largest stakeholders on Steem, and that's rational. Giving him free flags worth 25% of his VP is going to make that situation very much worse, not improve anything at all.