It took a mass murder in a black American church for the U.S.A. to finally accept the obvious, the Confederate flag is an offensive symbol. As often, the reaction will have little to do with reason and measure.
Because the U.S.A. is what it is, there is one side trying to ban the flag everywhere, including from video games and possibly even films. Meanwhile, the other side is trying dissociate the flag from any symbol of racism and segregation claiming "Heritage not hate", I wonder what they would think of a German wearing a Nazi flag saying the same sort of thing.
It's obvious, the flag should be removed from every and any government buildings (including schools of course), it should have no existence other than a piece of history. For others, it should remain a personal choice, because freedom of expression etc. However, they need to accept that the flag is not a symbol of unity and acceptance and the heritage it represents is based on a thick layer of exploitation, racism and blood.
It's so ridiculous that perhaps a modified version of the flag could help. Replace stars with Swastikas, to show what others see when they look at the flag. A Gay Flag background would help make the flag look nice while pissing off the homophobic Confederate flag lovers.