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Actually I can see at least in the paused context the showing of flags making some sense. If I flag something, I'm telling myself it's important. If I pause a project, that MAY make that item less important, but if so, I should probably remove the flag. If for example I've flagged something I'm waiting on, or delegated for follow-up, I still want to make sure I get the information in the promised time-frame.

I guess in the end, it depends how you apply flags. I do agree that the flagged perspective should not be canned, but rather allow you to apply the perspective you wish to it.