I'm always amused by this, and it seems like even the media often gets it wrong. Yes, some of those are legit (like advertising), but a lot of them are not. The flag code specifically says what a "flag" is in the context of the code.
But to try to say the intent of the code is to allow kneeling is goofy. He's basically saying "hey look the code only says should, not shall when it comes to saluting" at the same time saying "look at this code, no one follows it at all".