Technically, under the strict rules of flag etiquette, it was improper. But how can making something to send the message to the troops (which is where that flag that was written on was headed) somehow be "desecrating" the flag? I'd say it was being honored.
http://www.wacotrib.com/news/content/news/stories/2005/08/29/20050829wacCRAWFORD.html
CRAWFORD – Newly crowned anti-war icon Cindy Sheehan has occasionally spoken of her affection for Central Texas, where she's mounted her controversial, month-long peace vigil, but many townfolks here are still ready to see her go.
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