I like the wee flags.
Simon has enough experience of running the forum securely for us to trust him to make a call on the greater good for the majority, even if a vocal minority disagree. (A poll or vote will naturally be skewed towards those who care enough to register their disapproval - the vast majority don't care - at a glance there are about 5 people on this thread with a strong negative opinion, out of how many thousand members?)
The corner case described of Bjork the Inept Icelandic hairdresser requires Bjork to be as clueless with regard to the public internet as she is with regard to running a hair salon. Her foolishness should not disadvantage the majority of more clueful forum users, who recognizing they live in a small country are more circumspect with posting significant personally identifiable information. In fact I would argue that having a country flag would help Bjork give a silent anti-witness to other Icelanders also lurking on the forum.
As to posting while travelling, if its a concern just zip your paranoid thoughts up until you get back to a secure location.