(sticking it in here, since this is not a mod, but a issue related to how the modding system handles flavor text)
As currently structured, the modding system doees not allow effective modding for Flavor Text.
Because the hooks used for recalling text are connected to specific Internal names, players cannot create new internal names to which the game will refer. So, the only way to mod the Flavor Text, is to do to FlavorText.xml overwrite. Of course, this can be done. But as it is with all systems which only work with overwrite - any modding of flavor text, which seems important to the development of unique faction personalities, are not compatible with other mods that also edit Flavor Text.
A possible solution is to make it so that flavor text, while IDed by internal names, tied to a new element such as "FlavorTextTrigger" where the values specify the context in which the text appears. This way, the main FlavorText file could be connected to the triggers while mods can also be connected to the triggers.
Basically, there needs to be a secondary step in identifying what flavor text should be used. Because it appears to be directly tied to the InternalName, we have to do overwrites instead.