>Well, yes. We can introduce such a mutant plant though I can hardly imagine the physical implementation.

Well, we are not limited by real live plants. Just invent another one and call it "wool-seeds" if you want to.

>or either or a mixture which can either be grinded (flour) or yarned (cloth)

That was the idea. You just harvest the "wool plant" and can produce either flour or cloth from the "wool plant"

>Again I'm lost. What's a flare?

Something like firework in this case. I think it basically is what Newton had in mind when he mentioned the "mini boompack"
( http://i605.photobucket.com/albums/tt138/espi57/Tir_PLF_1.jpg )

>Yes again. But again very uncommon and unfamiliar usage.

But why does that matter? I think the player will understand both equally fast if we tell him to use a sickle or a sword to harvest that plant.
And harvesting stuff with a sword has more style than doing that with a boring sickle, anyway!
The idea behind that was
1) You have one item less that needs similar materials (both sickle and sword would probably need the ~same and only look different)
2) You have one item type less to clutter the inventory of your buildings and chests
3) Since you have one item type less, the production menus are cleaner
4) If we thought of cool production lines for weapons - why not use them in pure settlement melees too? Otherwise the anvil (or wherever you produce a sword) will just be nice decoration for your construction menu