>"Now people take it way too personal, believing 'their (!) money' has been 'taken away'..."

While this is true, flags do counter the influence and outlays of the upvoters who sought to allocate rewards.  I am actually far more irritated when I see my upvotes countered by flags than when I see flags on my posts and comments.  I spend my actual VP on my upvotes, and I do not on my posts, so flags actually cost me my stake when countering my upvotes.

Not my theoretical rewards.  My actual stake.  

Thanks!