There are things the HOA has no right to outlaw. Flying the US flag is one of them.
But your support of "pure democracy" is noted.
I believe this came about around a dozen years ago.
See that’s where a lot of HOA’s don’t know or don’t reveal and thus keep the home owner’s dumbed down. State law of Indiana requires all new developments to have a HOA but it also prohibits HOA’s from preventing anything that is state or federal law. While the issue here is the flag, Indiana stipulates that one can put solar panels on their home. This HOA has banned solar panels. If it were to go to court the HOA would lose. On the flipside, a quorum of majority home owners is needed to change the By-laws of the HOA. Good luck getting a majority of homeowners into vote when you barely get them to vote in a regular election.