The flag system as always been one of the weak pints of MO.
But as long as there is no real justice system in the game with the hability to punish people you catch doing shit very harshly. They have to come up with some sort of system to identify players based on the behavior they have in game. Call it flag system, Karma, reputation. It won’t change anything. The abuses and exploits around those system will always be the same and griefers will always find ways around those systems to harass new players as well as old ones
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So as long as you can’t capture people and put them in a jail and stop them from playing or kill them permanently, you’ll have to get ready for exploits.
Removing guards would be a terrible idea that’s for sure. Though if your guild is in control of a town, you should be allowed to have your Reds enter the town and your guild members kill the people they don’t want in your town. It’s should be up to the guild that owns the territory to decide who can stay. I was almost never able to enter the towns I took over with my guild cause I was always Red even on my blue guys I had to go Red to kill the blue griefers in our towns. It’s a pain and I hope it won’t be this retarded this time.