I haven't been keeping up with the whole flagged revisions thing but in theory, I think pending changes is a good alternative to semi-protection (and protection). IP editors and new accounts can make changes to semi-protected articles "in context" instead of proposing edits on the talk page and the talk pages of protected articles aren't littered with "editprotected" requests.
However, I would have been happier if the right to review was automatic for any autoconfirmed account instead of an "easy come easy go" user right. If somebody reviews and accepts a "vandalism" or "BLP violation" edit then treat them as if they made the edit themselves.
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