How about this?

I think this would be a pretty sweet idea, you could choose from a whole bunch of different flags types like, normal rectangle, pointed, two-pointed, one like the flag of Nepal, frayed at the ends, etc.

And can either be positioned horizontal as is traditional or vertical, and can be edited with a unique custom editor in the game.

You can make your flag colour sensitive to change with whatever color you are, and it will be displayed on your capital buildings and places where you wish to plant them and on your standard bearers.

Ideas? Objections?

Well we could just do what we do with people who have innappropriate names (ban'em!).

I have a question: Should the Nazi symbol be considered innapropriate, it is historical...