One reason for using reduced flap on a 744 is not because of the cross wind, it has more to do with the wind gusts associated with strong winds.
Using full flap 30 in gusty conditions requires a Vref additive and as the 744 has a huge inertia wind gusts are seen on the PFD. This means that the operation can become very close to the flap load relief limit. Therefore, if the flap load relief operates the flap automatically reduces to flap 25. That's fine until the flare and as the IAS reduces the flap can reposition itself to 30 causing a balloon and touchdown further down the runway.
