I read an editorial in my local paper about how it insults veterans to kneel on the flag or do other things with the flag (hugging it was not mentioned). Most vets I know would think saying that is an insult to vets. Vets fought for the constitution and rights we have. I may not like it when someone disgraces the flag, but it makes me proud to have served and given that person the right to kneel on the flag, burn the flag or even hug the flag.
What insults me as a person who loves the flag is the over use of the flag. I might be a little European in this attitude, but your national flag should only be displayed on government buildings or memorials or other really important places. I hate seeing it on your truck or at your car dealership. I don't even like seeing it at your house. I'm good with the service flags or POW flags, but I don't need to see it at your house. Maybe for special occasions like the 4th or Flag Day, but that's it. Am I going to do something about it, nope, you have that right.
What I really think is disrespectful to the flag is co opting it for your own use. Blue flags that support police, that isn't old glory, you bastardized it. Make a police flag. US patterned flags supporting your favorite ball team (saw blue Royals flags with the logo in the ensign. Just fly a team flag. I tend to think the people complaining most about disgracing the flag are the ones disgracing it by doing these things. More importantly there is no protest or reason for flying these flags. Just saying I'm more patriotic or support causes.