Where it's easy to reflect rockets it's also easy to dodge them. You're not going to hit both the flare and the rocket at the same time, they don't even start in the same place. If you manage to get hit by both it's most likely you doing something stupid rather than the pyro being some sort of god. Although I do admit doing both at the same time makes it easier to hit with something.
And if you got reflected at close range then that's your fault for being predictable.
In the 4v4 matchup, the only stuff the pyro can reliably reflect is you spamming from far away. He only has as much power with the reflects as you give him, he can't rocket jump to stop scouts or bomb players, he goes down easily to heavies, and he can't reliably reflect your rockets when you're fighting him or another player at close range. It's definitely not impossible to overcome, but in some places it might be a possible full time alternative, and I don't see anything wrong that.