If this is basically just choosing between Normal (Story) Mode and Hard Mode, why not just call it the way it has always been called? Trying to change the name to Tier 1 and 2 is the reason why people are probably confused. Just label it as Normal or Hard Mode.
Tiers of Flashpoints:
What is the difference between Tier 1 and Tier 2 Flashpoints, you ask? Difficulty! Tier 2 Flashpoints are more difficult than Tier 1 and we felt that it wouldn’t be a good experience to place undergeared players into groups where they couldn’t meaningfully perform their assigned role. To support this, Tier 2 Flashpoints will be disabled by default and must be actively enabled through the Group Finder filters. Although there is only a single selection (Lost Island) for Tier 2 right now, there will be more in the future.
In addition, Tier 1 and Tier 2 Flashpoints share the same Group Finder daily reward mission. As we gather feedback when this feature goes live we will be making changes to the reward structure as needed.