Help me understand homey's thinking

With standard flow (not advanced flow) you should not think about ‘too much flows’. It is what it is, while multiple triggers are impossible. i’ve seen figures like 900 flows on a Homey

So you have at least one ‘On’ flow and one ‘Off’ flow for switching a device, unless you switch it off after a fixed delay in one flow.

Correct. It is used for when the zone is inactive and the timer, which turns of the light, has started, but the zone gets active again while you move, or came back in a short while. This way the light doesn’t turn off and the timer is restarted again when the zone gets inactive.
I use zone activity mostly, while it is independent from the used sensors. You can add one, or replace one, without having to repair all related flows.

There’s a brand new flowcard introduced the other day, which makes the use of timers and 3rd flow unnecessary (it is available per Device Capabilities app)

It is for devices, not for zones (yet):
It means, in the example flow:
when a motion alarm is off (=false) for x sec/min/hr → trigger the flow. (Execute “Every time” is obvious for a sensor, but for other purposes it can be set to “Only once”.)

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