Exactly. The only reason there is a stink about this is because of a Religious aspect of it. I dont think its the matter of it being a American Flag issue.
I have to wear company shirts here at work. That is what is stated in the Employee Handbook. If I choose to wear my 1988 Motley Crue shirt because I think the Crue is cool and everyone should know it...and I get told I cant wear it..and I argue it... I broke company policy. I get fired. Its buisness folks. Try not to throw political/religious backing into a mere dress code violation and a stubborn employee. We have larger things to worry about... like Jon and Kate.
