And displaying a flag should no more be a problem than standing for a judge in a court of law
Smiddy3- Yes you are quite correct. There is nothing wrong as only showing respect for the nation you live in. It's also the same when standing for a national anthem, but not singing.
However, watchtower continuously practices double standards. For example the UN debacle. This was meant to be the image of the beast according to their teaching. Yet they were a member for 10 years as an NGO. It hypocrisy!! It shows that the interests of the Society ie money/property will always come first before Jehovah!