I can say that mine doesn't flake. I haven't noticed any problems whatsoever with the finish on mine. I can say that their is at least 4000 through mine and I got it used. Well the new slide has about 1800 rnds through it.
I would call Phoenix and see what they can do. Like I said I got mine used and the SS slide cracked at the range one day. I called the company and they said ship it to them. I shipped the pistol and about 3 weeks later I recieved the gun with a new slide, they buffed out some scratches, new grip panels, a magazine gun lock, owners manual, and a new 10rnd mag. No cost except for the original shipping to the company. Not bad for a used pistol I paid $75 for.
I will say that I love mine. It is extremely accurate for the size gun that it is. It is reliable as well(as long as you don't use Federal HP's).