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I wouldn't worry about the "CON." It's not like anyone is standing over tons of burning flags for hours every day for years.http://blog.scoutingmagazine.org/2014/09/08/retiring-worn-out-american-flags/
This web site tell how to retire an old flag.
Option 2: Burn the flag to retire it
A popular way to retire a worn-out American Flag is by burning it. Page 76 of the BSA Handbook says, “A national flag that is worn beyond repair may be burned in a fire. The ceremony should be conducted with dignity and respect and the flag burned completely to ashes.”
PRO: Method preferred by U.S. Flag Code and BSA Handbook. Usually the most ceremonial and solemn method.
CON: Worst option for the environment and your Scouts’ health. Unlike the cotton and wool flags made in the early 20th century, today’s flags are made out of petroleum-based materials like nylon. Burning nylon is different from burning cotton or wool and can create hazardous gas.
BTW, there are still some cotton flags made in addition to synthetic ones.