It's all a personal choice. The flagging popup says it's to be used if you disagree with the rewards. I don't think spam deserves anything, and yes that is based on my own judgement of what is spam. I mostly reward people for doing good stuff.
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Completely agree, I think anyone who's making several short posts a day does not deserve tens of thousands of dollars per day for doing so - I don't understand where this support for someone who's clearly using the system is coming from.
It's not like he even has a real following, people just know that ranchorelaxo is gonna give him a $400 upvote, so if they upvote first, they can make a handsome curation.
The rest of his following are minnows who see him as an idol of success, and something to aspire to be.