I believe the best option to satisfy both parties would be to put the word report next to the red warning sign and move it completely to the left side, horizontally opposite of the where the post number is. I'd also suggest that the report button would send a system message to moderators and administrators warning them of the post. A little text box to explain why you flagged the post, or some options you can check such as "Spam", "Inappropriate", or "Other" would be beneficial. Removing some of the features of the "Suggest a Change" may also simplify everything.
