I always saw flagship as the product they want to use to show the world what they are capable of.
Here is my best, most awesomest ship and I shall fly my flag on it!
I would agree, though, I will admit, it would be the most technically advanced version of anything I could make.
One could argue the Stainless Steel is the flagship as it has everything the gold model has, plus it's physically the strongest also, so, technically better.
The softer gold one, you could argue was the inferior product, albeit more expensive.