Yes and No, depending.

I would like to suggest the flag/down-vote terminology should be implemented according to impact.

• If the flag/downvote is going to result in reputation damage, call it a flag.
• If the flag/downvote only has concequences for the pay-out amount but not to the reputation, call it a downvote.

Ideally, I think, a change to the underlying APIs would be needed to further untangle the situation according to intent.

• Ideally, a high-rep individual should get the option to do an actual downvote without reputation damage to the receiving party. That is, a high rep individual should get both options where the downvote option should be free of inflicting reputation damage regardless of reputations involved.
• Expanding on this idea, a reputation-impact-free version of upvotes could help fix the inflated reputation problem caused by the use of bid bots. Allow bid-bots to drop their reputation lifting capacity voluntarily and user initiatives could declare open seizon on reputation-inflation bid-bot users if they would see fit to do so.