MTB shoes. Mine are comfy and good to walk in.
I know flat pedals are trendy again, but I'm not into it. I can do it, but it's not as comfortable. Yes, you have to make sure you get out of the clips when something happens, but I have more trouble falling off of flats and getting hurt when something happens.
But that depends, for commuting short distances, yeah, I'd go flats. For riding when the point is the ride, clipless.