From what I've read about fluxing, you are right about the carbon atoms that result from heating the fluxing material.
They will combine with tin oxide, removing the oxygen and allowing the tin to return to the lead.
If that's true, and we are using a lead/tin alloy, fluxing can help maintain the lead/tin ratio in the mix but since most of us want to cast pure lead, fluxing the mix would be going in the wrong direction. Removing the tin could be good for what we want to do.
I usually flux the molten lead but I think probably the best thing it does if to force me to skim the junk that has floated to the top of the pot. There is no doubt that that light weight stuff that floats to the top isn't good for making quality castings.