I don’t quite understand why they don’t just let trusted users manually rate search results and feed that through AI to determine ranking penalties similar but not exactly like Kagi.
They're already doing that with paid quality raters. I suppose your question is about opening this up more widely, but that's basically giving those spammers a tool to directly influence the ranking, which is going to be even worse.
Probably because they prefer a ranking order that promotes sites with more of their ads or some such, and/or causes users to spend more time going through results looking at more ads.
For the same reason Twitter, Facebook and other anti-social media companies fired there Trust and Safety teams. The parasitic elite can't trust hoomans to not turn on them and promote sites and ideas that they consider dangerous to there rule. This is the reason A.I. has risen in prominence, and is clearly biased when talking about the class war.