I recently started a thread asking what the heck "natural flavoring" means. My
understanding is that while the end flavor and the original source need not be
the same (for example, natural orange flavor doesn't have to come from
oranges), the origins have to be somehow organic in order for it to be called
natural.

So, natural butter flavor sounds to me like it could come from butter, or from
some other (organic) source, which probably has a lot of the same qualities as
butter would. So if the fat or cholesterol is of concern, natural butter flavor
may be just as bad as natural butter.
-Jen
Half the people you know are below average. -Steven Wright