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RE: Is 'Quality Content" Like Holding Onto The Rotary Phone And Steemit Inc's Conflict Of Interest
I can say there is a logical reason for the splitting in the wallet.
When the wallet is tied into the rest of the code, the security level necessary is much higher. Hence, updates were slow because you cannot make a change and expose the tokens. By splitting it, the level of security for the "social media" aspect is a lot lower. Implementing new features will not affect the integrity of the wallets since they are completely separate.
You bring up a valid point about the retaliation aspect of the flagging. So will more smaller accounts be involved at all since the potential still exists.
The retaliation issue can only be solved with anonymous downvoting. This could be accomplished today with a community run bot that processes encrypted memos with links to content that should be considered for downvoting.
That looks like a very good idea if someone controls that the downvote matches the requirements of the community... for spam, plagiarism, hate speech etc...
Anonymous downvoting could have some drawbacks without that control.