We view the work of the Kubernetes (and Mesos, Docker Swarm, and other scheduler projects) team as incredibly valuable to Flynn.
We try to solve problems and create value at a the platform layer. Schedulers are one technology we use, but aren't at the core of the value that we (or most other platforms) deliver. We want to make development and management of production apps simple and invisible. For most users that should mean never needing to know about or interact with a scheduler directly.
We closely monitor progress on the major scheduler projects and look forward to a day when we can utilize one of them in Flynn instead of maintaining our own. As these technologies mature we'll be able to deliver even more value on top of them, while saving users from interacting with lower level components.