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I do not know of anybody successfully using RSSI for location. The rssi values typically have a very large variance, which gives uncertainty up to several meters. It can be used to check which room something is in, but not accurate location.

But please prove me wrong on this, it would be amazing

I cannot answer how the softdevice is flashed on the Crazyflie, but i can tell you the different ways to flash a softdevice. The first one is by using the SWD (Serial Wire Debug) programming interface of the nRF51. SWD is similar, but not interchangeble with JTAG. The other way is to have a bootload...