Debe poner la condición tanto en la subconsulta como en la consulta externa:
select yt1.*
from yourtable yt1 left outer join
yourtable yt2
on yt1.id = yt2.id and yt1.val < yt2.val and yt2.ignore <> 1
where yt2.id is null and yt1.ignore <> 1;