If one of the founders and creators of the system is doing that, it should tell you that your idea of what the feature means is incorrect. Indeed I would argue that calling it strictly and exclusively an "abuse flag" is too rigid. It is a flag, certainly, but whether it should only be used for abuse is simply opinion. Clearly @ned does not see it that way.
It can even be primarily an abuse flag and still be used for other purposes. That said, I agree with you that there should be a downvote option distinct from flag.
RE: Steem Dollars have Limits