Jfern is basing his argument off of a false premise. The proper way to retire a flag that is worn or damaged is to burn it. This is the respectful way to retire the flag, and it is part of a ceremony. Desecrating the flag in protest by burning it is different, since you are taking an in-tact flag and destroying it. It's not a hard concept to understand.
The fact that there actually is a ceremony is evidence to my claim that it is idoltary.
Ummm . . . no. A ceremony is just procedure, and does not denote religious intent. Otherwise, retirement ceremonies are religious events as well . . . and I think the only time I heard "religion" mentioned in the ceremony is when the guy said "Thank God I can sleep in tomorrow."