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Aggro decks can utilize him as described above, control decks will lean on the removal aspect but also appreciate the untap ability to gain more mana or grant pseudo vigilance, and combo decks can use the untap ability to do crazy things like untap Gilded Lotus or maybe an even more broken permanent

Even if your opponents are able to get rid of Flynn in a single challenge, its still going to cost them a card - and if they hesitate, you might be gaining two lore each turn

Yes, you have two discard two cards in order to use its effect but discarding is sometimes potentially good depending on the circumstances

Update June 12, 7:30am CT: All MTG Lord of the Ring card prices were updated for June 12