The question has greater implications about tradition. My yacht club seems like many to follow navy traditions in terms of uniform names of elected management and flags/ burgees.
I have no connection or interest in the navy. I enjoy my club and am quietly proud of it but I don't see why we should pretend it is a branch of the armed services. I would much rather see it as it really is just another club similar in role and structure to the local tennis club or bowling club. (especially the rule about not wearing a hat in the bar)
I am grateful that in this modern age a military is not a major part of our culture. A culture of peace is something to be more proud of. I am not saying we don't need a military and I am not belittling the work that our military people do. I just feel that they should be kept out of sight as a necessary evil. Unlike all of those 3rd world corrupt governments who glorify their military not seeing it the way the outside world see it, as their way to oppress their own people.
So for flag etiquette to me it is only necessary to keep the sensitive or touchy happy. I prefer to be pragmatic. olewill