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RE: The Heck is going on with Steem?
Indeed, Steemit has enough SP, but as @Ned said at SF2, he doesn't want to get involved, so people don't think he has favorites, so I don't think there's too much hope to see any flagging from their side.
It's sad when the investors hurt the community through their practices because they would not earn anything without the community.
There will for sure by no flagging by Steemit Inc (I mean, c'mon, Ned doesn't want to play favourites but then he decides to delegate to dMania instead of to a curation project?). And no witness could ever become a top20 witness without the support of huge vote sellers like freedom, so the Steemit oligarchs won't change the system - the only way would be to start a revolution, but historically we know where that would end!