luceos I think you must be thinking of this issue, where Toby suggested merging flags into the notification dropdown (a.k.a. the Bell) and I said I thought it's better to keep the flags separate.
Digital I tend to feel that a post's flagged status should not be displayed to everyone, as that in itself lead to trouble, or exacerbate it. It's enough that members have a way to discretely alert the moderators to a problem; after that, it should be left in the hands of the mods.
But that is a matter of approach, which may vary from site to site. If enough people feel it would be useful, it might be worth adding in a "reported" message and a permission to enable or disable it on a per-group basis.
Even if this isn't added to the bundled Flags, however, it could always be added by a third-party extension.
