I don't know if Pathfinder changed the rules, but i believe that:
You are correct that "Flanking" is not a status effect; but a creature that is Flanked, also loses his dexterity bonus to AC.
Rogues can sneak attack creatures that are denied their dexterity bonuses to AC.
Net effect is that a flanked target can be sneak attacked by any rogue with a bow within 30 feet (i think that's the correct distance for a ranged sneak attack)
You are correct that "Flanking" is not a status effect; but a creature that is Flanked, also loses his dexterity bonus to AC.
Rogues can sneak attack creatures that are denied their dexterity bonuses to AC.
Net effect is that a flanked target can be sneak attacked by any rogue with a bow within 30 feet (i think that's the correct distance for a ranged sneak attack)