I look at the picture to be that of a man in uniform, holding in his hands what he loves the most: His country and his family. Beautiful picture.
If people find this offensive, then why has nobody complained about USA Olympics participants/winners with the US flag draped on themselves, or even of tanned blonde women in super short shorts and a bikini top with the flag on themselves?
Some people do complain but most don't because they know nothing will be done about the misuse of the American Flag.
Wearing the Flag is totally against the U.S. Flag Code.
Clothing items can have components of the Flag, such as stars, strips, colors, but no Flag is supposed to be used as an item of clothing.
For anyone not familiar with the U.S. Flag Code:
http://www.usflag.org/uscode36.html
Years ago, I did write a letter of complaint to a running shoe manufacturer about a full-page ad they ran in Runners' World magazine. It looked like a pair of shoes set on a folded American Flag. They wrote back to me that it was actually a Flag design pillow but they agreed the look was deceiving. They didn't run that ad again.
A couple weeks ago, our church had a display of small flags from all over the world representing the countries where we had missionaries serving. Someone thought it looked better to stagger the heights of the rows of flags. TCS quietly explained to the person in charge of the display that it was improper flag etiquette to arrange them that way--they needed to be treated equally. So, the display was changed.
Most reasonable people, if they are approached properly, will respond in a positive manner when they are educated about flags. Posting death threats definitely isn't the right approach.