Hmm.. perhaps I didn't present the scope of the issue well enough.
This is a tricky issue, something that other systems (law enforcement for example) have developed long systems and uncountable rules involving chain-of-command, appealing before a higher authority, etc.
Private Messages by definition are intended to be between a selected group (a group in my post is >= 2 participates) and the relationship between those participates can define the construct of that sequence of messages.
That is, while there may be forum rules and a admin can suggest users adhere to that in a PM, there is no obligation to follow that if all members of that group are ok with a alternate set of rules and it is impossible for a admin to view them by default.
When you look at a flagged single (or multiple flagged posts in a PM), you are only looking at a sample of a interaction from one perspective.
One should not expect a admin (someone who is expected to take action on the flagged posts) to resolve the situation when they are naive to events surrounding the flagged post(s).
To illustrate, let's build a example relationship involving You (the reader), I and a admin.
In our hypothetical situation, you and I are communicating about a project. It is in our norm to use explicit language and issue threats to each other of a trivial nature.
This can be any normally inappropriate construct of communication, perhaps involving racism, sexism, whatever-ism. To be clear, while it is easy and probably correct to vindicate such interaction as inappropriate, the important part is - Since you and I are ok with this setup privately, this is in fact a appropriate communication between the participating parties.
During this communication, I become frustrated at some action you did and wish to exact a form of punishment. So I flag some posts of yours where it makes you look like the bad guy.
In this scenario, what should the admin see? Only flagged posts by the accused?
In my opinion, a naive admin would take action on these posts out-of-context. A well versed one (in my opinion again) would do nothing, since they do not have enough information to make a judgment call.
I should note @luceos, this is a good extension. I'm primarily only concerned with flagged posts and if I add it, only I will be able to resolve flagged posts on my forums since I would (as @jordanjay29 already mentioned as a method) have to manually access the database just to make what I consider reasonable decisions.