The Civil War is a part of US history and it should be remembered for both the good and the bad. If people want to fly a Confederate flag they should be allowed to. The Confederate flag is the battle flag - not to be confused with the political flag of the Confederacy.
People say it is a symbol of racism. For the most part, people who use it today are using it for that purpose, but in reality it does not symbolize slavery. The Confederate battle flag was flown only during the Civil War... a mere 4 or so years, unlike the US flag that flew over the institution of slavery for almost a century before the Civil War.
Regarding the dispute over why the south lost the war... THX is right, the South didn\'t have the manpower or the resources to win a war against the north. The north was industrialized while the south was mainly rural. Also the population of the south was quite smaller than that of the north.
If people wish to remember their ancestors - whichever side they fought for - they should be allowed to. Most of those who fought for the South never owned slaves. Only a small percentage of whites in the south could actually afford to. The Sons of the Confederate Veterans is the same thing that The Sons and Daughters of Revolutionary War are - a group that has a common bond in that their ancestors fought for a cause they believed in. Go ahead and let them remember... it took a lot of guts to line up in a field 20 yards from each other and fire away until one side ran or was dead.
Lastly, for the record, I live in the deep south and am a northerner whose ancestors fought for the Union.