AFIK, a "flatening Reef" was developed by racers as a way around the sail measurement rules. Race boats have precisely measured sails, and markers on the mast and boom delineating rated rig measurements. If you outhaul your main beyond the marker on the boom (the marker is usually in the form of a band of contrasting color around the spar), your competitor(s) will observe that as a rule violation, they will then raise their red protest flag, and if possible, hail you that you are under protest. All else being equal, you will loose the protest.
If you are not racing, outhaul away to your heart's content. If all the outhaul in the world won't adequately flatten you sail, then you most probably need to take your sail to your favorite sailmaker and discuss a recut to flatten it out.
OTOH, if your sail shape is generally "OK" and the problem is your boom is too short to allow the amount of outhaul you want, then rigging a flattening reef would be a workable solution.
My experience with loosefooted mains is limited, but I can't see why the application of a flattening reef would be any different than for a "regular" main.
All the above is based on about 45 years of sailing and racing -- but, of course, that doesn't make me an expert. Let's see what the rest of the Ericson gang has to say
Mike Oxborrow
E-33RH JP Foolish, hull #25