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RE: YouTube's Days Are Numbered - D.Tube Is THE Blockchain Solution To Censorship! (interview with the creator of DTube)
I totally agree with you on this. Since the government has alot of money they can chose to join the community and take control by buying as much steem power as possible and there are no measures taken on Steemit to stop one person from monopolising the whole system.
The good thing is that this is open source and we have talented people who can counter any attempt like this by changing the code and make the flagging system not based on proof-of-stake or let it work differently. So even though we should be aware of this issue, it will not bring down the Steem blockchain. It would only be temporary.
am guessing it would be something like a tiny bug in the system haha