D=Diffuse, N=Normal,S=Specular,I=Illumination ,D2=Standard Texture Map
The DNSI are used when you have "Full Shader Effects" turned on. This you will find under "Preference-Effects".
Generally, the idea is - the D2 textures are painted with shadows and highlights which give the impression of depth on a flat surface, but not so effective when look at it from an angle. So when using shaders the N maps are used to calculate this depth, and can be viewed from different angles. The D is flat as it is only used for color.
Okay, I think you already got all that, just going over it for myself and others.
To "flatten" or to diffuse the image, you would use a paint program to remove or reduce the shadows and highlights.
peace
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