They mainly flag each other at the higher levels (people with real voting power) because they have huge egos and want to shape the posts and wallets of everyone on Steemit. Yes I could give you examples but for obvious reasons it's never safe to name names with bigger wallets.

I still love Steemit to bits, but I think flagging hands power to some real arseholes and I would bin it. Many Steemians with far more knowledge than me totally disagree though!