I will briefly summarize what I know and then ask my questions. If you spot mistakes in my summary, please tell me.
The idea of flavor symmetry is that massless QCD is invariant under SU(6) transformations on the 6-dimensional flavor space for quarks. Since up- and down-type quarks are treated different in electroweak theory, speaking about flavor symmetry only makes sense when speaking about strong interactions/QCD.
The typical energy scale of QCD is the proton mass. After including quark masses through electroweak symmetry breaking, flavor symmetry is therefore still an approximate symmetry for a subset of quarks with mass differences that are negligible compared to the proton mass. It turns out that one has an almost exact SU(2) flavor symmetry for $\{u,d\}$ and an acceptable SU(3) flavor symmetry for $\{u,d,s\}$. Flavor symmetries with heavier quarks are broken so badly that there is no sense in talking about them.
Formally, one can arrange the quark flavors in a SU(n) fundamental representation. One can then do tensorproducts for flavor and spin to construct other representations like baryons and mesons. An example: $2\otimes 2 = 3\oplus 1$ for spin SU(2) gives scalar- and vector mesons, $3\otimes \bar{3} = 8\oplus 1$ for flavor SU(3) gives the eightfold way for both scalar and vector mesons.
Why do these tensor methods predict the right hadrons? One also finds hadron multiplets for flavor SU(4), which is badly broken. As I got it, there is no sense in doing tensorproducts in representations of broken symmetries. What did I miss?
Furthermore, one can attach flavor quantum numbers $I_3, S, C, B, T$ to SU(n) flavor symmetry. Quantum numbers are defined to be conserved for exact symmetries, so these quantum numbers should not be conserved since flavor symmetry is broken. But there are no flavor changing processes in QCD, so surprisingly these quantum numbers are conserved in QCD. Why are flavor quantum numbers conserved in QCD even though flavor symmetry is broken?