Flanelette is better for a newborn if you want to use flats as they aren't as bulky as terry.
There are a lot of prefolds about that aren't really a prefold as you've discovered so read the descriptions carefully. Also the material they are made from will help their performance. I've been making my own with an extra panel down the middle out of bamboo and testing them as a stuffer in DS's pocket nappies with great success. They're dead easy to make too so if you can sew or know someone who can then why not give it a go!

Ezz the BBH are still fitting Caleb at 2 so I reccon they are the best value nappy I've owned He still wears the first ones I got him when he was 8 weeks old!