Brock:
I‘m not going to start a pissing match over the flag - it incidentally, was the Confederate States of America‘s battle flag, not their national flag - but you should be aware that it is not explicitly a symbol of racism, nor was the Civil War only over slavery (to take from your post (a great deal less than more). In fact, it‘s not really a racist symbol except in the tremendously PC world. It is displayed with pride by many of my "in-laws" who are Southerners and not in the least bit racists as a nostalgic symbol. Comparing it to a Nazi flag is a bit ridiculous.
It is a symbol of defiance and rebellion, and it is controversial in the CF because it is frequently associated with the Canadian Airborne Regiment, and in particular with the very few "bad apples" who spoiled the CAR. My understanding, as explained to be by a former CAR Sgt, is that it was popular among all ranks as a symbol of the fact that the Airborne Regiment was a bit different, a unit with perceived elitism. "Defiance" and "rebellion" are not exactly military virtues, but one Soviet commentator (I wish I could find the exact quote) once remarked that the Soviets feared the Canadians (in particular the CAR) for their unpredictable nature and unwillingness to read, let alone follow doctrine.
For this reason, some ex-CAR men do (subtlely) display the Battle Flag to this day. While I don‘t disagree that its display to the public on bases is probably not a good idea and existing rules should be enforced, I don‘t see what the big deal about it is.