Edit
It is already quite difficult for new users to find the Edit button because it is not a button, but just a word. This typically encourages the following:
- posting code samples and clarifications in comments, not infrequently split across multiple comments due to length limits;
- posting samples and clarifications as answers;
- asking a new question to replace the old one, with or without deletion of the original.
Making the Edit button less visible on the grounds that it is less used is ... a little bit strange. If it is even less visible, I'm sure it will be even less used.
As somebody who has found the edit button, I use it a lot. Posts of new users frequently require markup changes to format code correctly, for instance, or to make pictures show or to correct links.
From time to time, moreover, mass editing has been required on TeX SE and small groups of users have been responsible for correcting hundreds or thousands of posts after a previous site update rendered working code samples unusable.
Making it harder to improve existing posts is a really odd thing to do. Improving both questions and answers should be regarded as a high-value activity. It deserves to be accorded a prominence which reflects that value.
Remember that the majority of these improvements (at least on sites like TeX SE) are made by people who do not get points or badges or privileges as a result. Making it more difficult for them to help the moderators sends an unfortunate message.
FlaggingFlag
Similar remarks apply to flagging. I do not use this very often, but there are times when I use it repeatedly because, say, somebody is continuously creating new sock puppets or continuously posting spam.
Moreover, flagging should be easily visible, regardless of how frequently it is required. If somebody becomes abusive, it is important that a current visual element clearly signals a way to request moderator intervention. That should never be hidden in some further menu, regardless of how frequently it is needed, because it is of great importance it be easily accessible when it is needed. A new user, especially, who cannot see this option at once is more likely to respond, potentially escalating the situation, or to simply leave.