In this day and age no matter which mode you play BBs are dominant, although cruiser can or could do fairly well but they are not allowed to, to live their role as support vessels, AA support, DD support, it is all meaningless because one single salvo can be your doom or in some cases 1 torpedo. While you can wasd try to dodge torps and shells at one point you know you will eat some. Now while even a Yamato shell to the tip of your bow might spell doom you are sometimes forced to eat one, even if it hits your citadel, 1 won´t kill you, most of the times. Now look at the torpedoes, depending on the hit location and timing a single torp to the bow can spill doom to your cruiser, First there is the initial damage, hardly migrated because no torp belt on the bow and a, at least felt 100% flooding chance. Now 1 single flooding according to the formula will add up to 60%+ of the ships health and it seems it bases its calculation on your 100% health pool. Together with the initial damage, that adds to a lot! Easily 80-90% HP in some cases (Cruiser health pool torp hit and flooding damage).
While BBs always have a repair party and can recover, most cruisers do not, neither do most DDs but they got the highest chance of evasion anyways. I play DDs and I can probably count the numbers of times i died due to flooding on one hand. Now a BB can repair, a DD can evade a cruiser is in the middle of things. Sometimes you can evade them all, 1 hits if the timing is bad and given the seemingly 100% flood chance you look at 80-90% hp loss due to a single torpedo hit, now you are fu**** and it happens more often than you think. Cruisers without heal face several mortal enemies, BBs guns in general since they can insta kill you or severely damage you by citadel hits, other shells, fires, torpedoes and flooding.
It is about time to make cruisers more playable, the reduced fire extinguishing time is one step, now remove flooding (for all or modify it) as well. It ties the game down more than it actually benefits!!
tl:dr
Remove flooding it is a terrible mechanic and serves nothing it promotes even more camping. Get rid of it now! Cruisers will instantly benefit.