Funny how you're asking a question about something you've experienced yourself.
It's like asking "Does mixing yellow and blue paint make green?" And then saying: "I was mixing blue and yellow paint and the result was green paint.
Would it help if someone came along and responded: No it doesn't?
Why yes, yes it would. Then I'd know there's something wrong with me - vaper's tongue perhaps. Or maybe I'm running my atomizer too hot and it kills the flavor, and I have to overdo the mix to compensate. If everybody told me "yes, me too, VG mutes the flavor", then I'd know it's not just me.
Also, you might have noticed people don't always ask questions about stuff they don't yet know: they share their experiences, and wonder what others experience with the same stuff they use. If people kept quiet once they've found something out for themselves, there wouldn't be much traffic on this here board, now, would there
Initially heavy VG blends may seem like the flavor is muted. Properly steeped this isn't the case in my experience. Do your own test, just be sure to let them mature before doing the comparison. I think you'll find an 80/20 blend to have the same flavor as 20/80.
I've steeped my liquids for a week. Yes, the flavors has developped a bit, but not by much. Thing is, I shake them so hard and so long right after mixing that it cuts down steeping time to mere hours.
Mind you, the "muting effect" doesn't happen with all flavorings: I have here a pistachio flavor that tastes of pistachio at the correct dosage, regardless of whether it's PG or VG. And if I double the pistachio dosage, it turns into fabulous buttery popcorn flavor, but only in VG.