I haven't bothered to go back and research this entire thing again, but I seem to remember getting the distinct impression when I did so, back when this actually happened, that the three kids in question were definitely trying to start something. So the administrator probably had reason to be worried about these three setting off some sort of riot. However, without overt actions to support the idea that they were trying to provoke something, his solution was totally wrong. If those kids had been wearing shirts with racist symbols or comments, then by all means make them remove them or leave the campus. But simply displaying the official symbol of our nation should never be restricted. If the administrator was that worried, he should have arranged for additional security to keep an eye on those individuals he believed might be trying to foment unrest.
It's strange that throughout this nation we have all sorts of parades and celebrations for people of all sorts of ethnicities, and we don't hear a whole lot of BS about them. For instance, come on over to Chi town for St. Patrick's day, when even Mexican immigrants are Irish for a day. Or for some of our Polish festivals, or Cinco de Mayo for that matter. Somehow we make it through tons of these things every year without starting World War III.
The decision was wrong, and hopefully it will be overturned on appeal so we won't have one more stupid precedent on the books that someone can use to suppress someone else's freedom to be patriotic. But don't be so sure that patriotism was the real issue in this particular case. This doesn't carry the same weight in my opinion as the case where a condo association won't let a veteran display his large American flag outside his condo.
Jerry