I think your point re the fog of war and the Fan's reminder there were two flag raisings is at the heart of the issue. The recollections of witnesses and participants, as we all know, can be inaccurate even though sincere and well-meaning.
There is no question that today's Marine Corps had a solid basis for correcting the record and is confident of its action.
IIRC once they secured the top of the mountain, the Marines grabbed the first available flag (a lot of Marines carried them into battle). They wanted to show the mountain was in US hands, and ensure no errant artillery or bombs hit them.
Shortly thereafter, someone decided that the first flag was too small, and they found and raised a bigger one. The photographer grabbed a photo of that flag raising. He snapped the photo at precisely the right time and angle, and an icon was born.
Given that Mt. Suribachi was still being contested when both flags went up, it is not surprising that there was confusion over who was where and when. They were busy accomplishing a mission and trying to survive.