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"... copyright is dead.”

Obviously.

There is one fundamental problem of flattr, and all other systems that are based on some kind of popularity measure, it will fail to allocate resources to new innovative or exploratory projects that by their nature attracts a small number of followers. That is those projects that have the highest probability to inspire big leaps in the way we look at the world, and of course also have the highest probability to fail miserably...
Popularity based allocation systems is by their nature conservative favoring small incremental changes and will have a strong herdlike component where many like the same thing for a while and then change to something else that is the current fad, because that is the way humans behave.