I believe he did, too. But if other ex-military are not supposed to salute out of uniform, why would the CIC salute? What is the proper way to respond to a marine’s salute of the president?
As a grizzled old vet, I am pleased and honored to once again be able to salute the flag while in civvies. As the other poster noted, this is a fairly recent change in the law to permit this. It was done at the instigation of veterans.
As for Mr. Bush saluting, he is a former vet so is able now to do so. I don’t know the rules regarding former presidents but I suspect they have the “right” to salute the flag or to render the proper honors at specific times.
Mr. Obama salutes only because he is required to. If he could get away without saluting, I suspect he would not.