The argument for no smoke/flame in space is not because they don't occur, but rather because they disappear so rapidly.
Ah, but you must consider the fact that since the gas leaks obviously exist in retail FS2, it's easily explained by increasing the volume of escaping glowing gas so that it produces the effects that we see.
I'm sure it's one form of anthropic principle... Because the flames are there (and have to be for graphics to look prettier), the amount of leaking gas must be sufficient to produce the flames.
Just like because there's life in universe (I apparently even intelligent, though reports remain unconfirmed), it means that the values that define the reality (physical constants) must have certain values. It's the easiest way to avoid problems with extremely unrealistic things such as flames in space, huge explosions, almost complete disappearances of miles long spaceships upon mentioned explosions leaving only few spacehunks floating around, huge blue vortices leaving to subspace, universes popping out of nothingness to produce all that into your computer screen... Thinks like that are most easily explained by strong anthropic principle.
The more difficult explanations involve much more headache.