I am kind of on the fence with this issue. I see the point of view from both sides and I don't know that there can ever be a compromise that is acceptable. I think this is an issue where people get caught up in their own viewpoint so much that they forget there is an opposing view that is equally passionate.
I am a Civil War buff. I have two ancestors who are buried in Confederate cemeteries, who I am very proud of. They didn't own slaves and weren't fighting for slavery. They fought with honor under the southern cross in Tennessee and Virginia. If anyone has understanding of historical heritage it is I. At their graves, I believe the flag should be flown in reverence. In a Confederate War Memorial or reenactment, it has a historic place in context. In history books or even in public displays, it can have a historic significance and I am fine with it. It's not like the Swastika. That represented an abhorrent ideology of eugenics and ethnic purity. The confederate flags represented the ideology of confederation.
I don't approve of this PC war on the "rebel" flag. I think it insidiously tries to pin racism and slavery on the South and Southerners in general, and I think that is patently unfair and ignorant of history. But beyond that, it seeks to remove one of our most cherished rights, the right of free expression. Regardless of why someone displays that flag, they should have the right to free expression. No one is prohibiting the rainbow flag. Can you imagine the PC nuts if we tried to argue that we need to ban the rainbow flag because it's offensive to some and causes divisiveness?
Now... with all that said, let me flip the pancake over!
The Southern Cross (aka: Rebel Flag) that everyone is so "offended" by, never flew over any statehouse in the South until 1948. This was done in protest by segregationists who vowed to fight desegregation, which was making it's way through the courts at the time. In 1954, the Brown v. Board of Education case put the writing on the wall, but the flags remained. They do not represent heritage or history, they represent defiance of desegregation. So it doesn't offend me in any way to have it removed from the statehouses, I think it's inappropriate to be there in a historical context.
In the case of Mississippi, the problem is a bit different. The State flag has actually been voted on by the people of the state. They tried to change it and failed. Interestingly enough, the current flag is commonly though to be very old, dating back to the 1880s or so... it actually was never the "official" state flag until very recently. Mississippi didn't have an "official" flag for many years. But all that said, I still believe the people of the State should get to decide what their flag has on it. This shouldn't be left up to polls or PC activists.
The University of Mississippi is run by PC activists. They recently banned the mascot, Colonel Reb and the moniker "Rebels" as well as the flag, and became the "Black Bears!" ...Of course, sports announcers and fans still use "Rebels" and it seems to only be a technical victory for the PC nuts. ....But, no one is waving that 'embarrassing' flag anymore!