My guess is you have geotagging turned on.

Due to limited space, you need to turn off geotagging or some other status applet you need (e.g. load) then you'll have flashlight replace it. Not ideal, but this is the easiest way I've found w/out messing with /etc/hildon-desktop/status-menu.plugins since that got too messy for me to deal with all the time.

Would be nice to have a simple gui in setiings to allow you to choose what you see and priority since many some of us never need (like profile you can easily choose via pwr button/dropdown and I don't need to see the mfe status all the time), but haven't bothered with an enhancement request.

Maybe I'll do that and post it back here.