I'm a veteran, and embarrassed I did not know about the gold fringed flag! I think it should be "common street knowledge". Uninformed persons could buy one (or more) because it's pretty and put in inappropriate offices/places. It soon becomes "street culture" and common-place.
It's like culture and "street language" that supercedes formal, well structured language that has no legal standing… yet we make choices and decisions on it.
Political-correct language is a good example. It destroys "clear communications" between people. It makes everything ambiguous. Each individual interprets the meaning into "truth" colored by their own experience and understanding.