I suppose if I were a Texan, that would aggrivate me, but that is an appropriate positioning of the flag. Sadly, if it were the Mexican flag or the Iranian flag, they would appear at the same height, according to protocol.
The Retreat ceremony [lowering of the colors at the end of the day] was a major function in those days. As the colors were lowered and all were saluting, I often wondered if the CG from a Confederate State was not exacting a payback by having the Texas flag saluted. :-)