I'd point out some key differences between flagships and capital ships...
First, as stated earlier, flag ships are considered frigates and so when it comes to ability filters, they may be targeted by abilities that can't target capital ships....
Second, there are specific technologies that affect capital ships but won't affect frigates (and therefore flagships)...for example, the Vasari have techs that cause capital ships to generate tax income and count as home worlds for victory purposes...
Third, any frigate that has the ability to bomb planets will always immediately go bomb the planet when under the control of the AI...this is not, however, true for capital ships and titans...
Fourth, capital ships gain XP which allows you to change the power curve in regards to abilities and stats....frigates are unaffected by XP, meaning the only way to modify how such ships progress through abilities or stats is through technologies...
In other words, it is not easy to simply replace capital ships with "flagships" unless you are willing to make some significant sacrifices or do some intense buff creations to link capital ships to "dummy" flagships...