This discriminates against users who cannot flag and users who do not flag. Since the only way to improve one's h-value is to flag more honeypots, it basically

This discriminates against users who cannot flag and users who do not flag. Since the only way to improve one's h-value is to flag more honeypots, it basically means that someone who can't/doesn't flag will have at best an h-value of -1. So would the h-value not be counted for people with few/no flags?