I think 1-2% is wrong
More like 20% according to this source:
http://www.seti.org/news/features/seti-and-the-smallest-stars.php
Same article mentions potential solutions for tidal locking. Elsewhere I've heard of resonance orbits like Mercury has, or planets with large moons like Earth has as potential solutions.
Finally, I've read but can't find a source saying that flaring is less of an issue as the M star ages.
