I'm about to contradict myself here, I hope that at the end it still makes sense. Yes, flavored tea is cheaper lower grade. And in my experience every time I find a vendor talking/writing about how their flavored tea is still 'good quality' it basically means (you wont spit it out when you drink it). But lower grade doesn't mean all bad, and as mentioned by others it depends on the process itself.
To be 'flavored' and 'fragrance' are two COMPLETELY separate things. Flavored in my experience usually means adding an artificial flavor or concentrate of a flavor to the tea to 'save' it, since its not that good by itself. Where as 'Fragrance' tea is usually high grade tea that has adopted a taste/scent due to the process or even storage. Examples would be Jasmine fragrance teas (there are 'flavored' and you'll taste the difference right away and specially in re-steeping your tea), which are now found in really high end and expensive offerings. Another example... Puerh, Bamboo fragrance, Pomelo fragrance and so on.
But to each its own, we all love tea, we just love different teas. Enjoy what you love