You guys are wrong, because a small flush is better on this board than a small set.

Just because you can improve with the set, doesn't mean it's a better hand. If you can put more than 22% of non-flush hands in his range, small flush here is better than a set.

Drawing dead is not that bad as long as you're drawing dead against a small portion of his range. He only has a flush here maybe half of the time. Sometimes he has a flushdraw + pair, small set, etc.

With the turn bet we're turning our hand into a bluff.