well, the thing is, standard duration is kind of long. if i reduce it to rounds/level, the ability is way less intimidating, so i'm hoping you'll not need to worry about having it used multiple times on the same creature.
Suggestion (Su): A flitte can use suggestion as the spell (caster level Xth; Will DC 15), with a duration of X rounds. The save DC is Charisma-based.
keeping that duration low seriously limits the usefulness of the spell. yes, a flitte can cause a paladin to drop her holy avenger sword (it's possible, somehow) and then bounce away. that's how it's supposed to work. and why not let the flitte keep trying. it can only use the effect once per round, so if it besets a party of adventurers, it can do little more than that.
i was thinking the same thing regarding caster level.
"A Flitte lair is usually a small hollow inside solid rock which can only be reached by teleportation. In a lair there might be an individual (30% chance), but it will usually include a mated pair of Flittes, alone or with 1-3 pups. The pups have one hit die each and can blink and teleport as adults, but have no attack capabilities. A Flitte lair will be near an area which is likely to attract adventurers who possess magic items. An individual Flitte without a lair will journey to such areas, tying to attract a mate or searching for a powerful magic item to steal or neutralize."