Yeah, I agree.
The law only applies to actual flags, not to the images thereof. However, for those of us who've defended those colors, there's not much difference. It's all about the intent of the heart - and there's no doubt in my mind what John F'in' Kerry intended.
A prudent sapient would detect the slight. Effin' in neither prudent nor sapient; and, anyway, you probably got it right: it's his "secret message" to the SDS crowd that his heart remains unchanged with regard to his loathing for the USA.
So, if you cut the flag out of the rug, it would be a flag! It does seem to be a rug they haul around with them, has his .com at the bottom of it. Now what rat genius thought up that rug??? Some clown no doubt!