Yes I imagine the flags are shown a little to large.
Take a look at the U.S. Flag below on the USS Sarsfield EDD 837. ( My sig. )
Wasn't it in SHIII the Devs said the enlargement of the flags was for players ability to make sure it was the enemy? Or something like that.
As said a few times before, the flags can be modded, so no biggie.
