\startplacefigure inherits a lot of location settings but among these flushleft
and flushright are missing.
Thus the \setupfloat in the example cannot be omitted. Wouldn't it be a logical
step to make possible also:
\startplacefigure[location=flushleft]
dito for flushright?
\starttext
% example to extend figure into the left margin (Hans Hagen, 2014-07-25)
\setupfloat[figure][location=flushleft]
\startplacefigure
\framed[width=1.1\textwidth]{location=flushleft}
\stopplacefigure
\stoptext
Hans van der Meer
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