If 99% of flags were being used to punish so called bad behavior then why is it that you see so much bad behavior still existing among those with the most power?
I am totally with you as to if this is just putting lip stick on a pig, if a downvote can cancel out a upvote all they are going to be doing in the long run is enabling a lot more people to be punitive toward each other if they want based on opinion not abuse.