I personally think this letter is a rare example of the Society taking a reasonable approach to a sensitive matter, something they should do in a lot of other areas. To me, displaying a flag on a day when every building in the land is required to display it is no different from having a car license plate with a patriotic slogan on it. Though some individuals have done so, the Society has never required all JW's to cover up such mottos, or even formally objected to their presence. If they would had been as reasonable in other matters, then the whole Malawi debacle could have been avoided and many unnecessary deaths and much suffering would never have occurred.
There are many other less serious issues that the Society could and should designate as "conscience matters." Birthday celebrations, toasting at social occasions, observing Mother's and Father's Days, etc. Being less concerned with total control of the flock's every action would go a long way towards easing the stress of simply being a JW.
Far more importantly, if they would just listen to the many well-reasoned discussions on why the Bible does not actually prohibit the medical use of blood, and make that too a conscience matter, many lives could be saved that would otherwise be sacrificed on the altar of the Watchtower. I really believe they would like to do that, but they've dug themselves such a deep hole in this matter, they can't dig themselves out without seeming to accede to apostates and public opinion and thereby undermine their supposed "spiritual authority." They are probably also worried about potential lawsuits from families who lost loved ones due to the blood doctrine. (I don't think these lawsuits would ultimately prove successful. The US courts never get involved in church doctrine and, to my knowledge, have never sided with anyone claiming to be harmed by a religious tenet, regardless of how silly or unjust it appears to outsiders.) They probably would lose a certain number of members if they changed this policy, but they'd simply write them off as "not true believers in God's arrangement," just like they did those who left when the 1975 prophecies went bust.
I welcome their seeming to become more reasonable in certain matters. It bothers me that they only seem to do so when it benefits them in some way, usually financially.
Just to be clear: I think the Society is a thoroughly corrupt money-grubbing enterprise, concerned only about enriching itself and maintaining total control over its members. It is just as underhanded as any other religious organization, more so than some. Many individual JW's I have known are genuine and sincere about their beliefs, and truly try to live what they see as a Christian life, but the organization is no more a "spirit-directed channel used by God to provide spiritual food" than any other publishing or real estate conglomerate. It's goal is to protect its wealth and acquire more. For a commercial business, that's fine. But when a business cloaks itself as "God's organization" and uses its adherents' faith and trust to demand total obedience and unquestioning acceptance of ever-changing doctrine for its own ends, that's evil.