There are currently some changes underway to get the flags Vs downvotes distinction more accurately and clearly depicted. That should change quite dramatically who ends up in what is now the flags section.

• Today the downvotes section accurately depicts financial impact. I'll be renaming it to "by impact on pay-out"
• Today the flags section shows what basically boils down to downvote-overkill from a financial perspective. It is confusing to many and was build based on my incorrect understanding of the reputation system. It will soon get replaced by a proper "by impact on reputation" section.

I'm not sure yet if the reputation impact will be raw reputation based or based on the bidirectional logarithmic scale used in the interface. Both have their merits and drawbacks Of it will be the later, flagging yourself into the top-X should be quite easy against someone with a rep of 26, as opposed to someone with a rep of 46, what may be kind of confusing in itself. I'm currently still leaning towards that option though, as I think raw rep might be meaningless to many.