Well, there was a great debate among right-wing Jews at that time. A few said they still loved the flag, although the Govt. was a traitor. Others said they would burn their Israeli flags and wait for the Moshiach to build a new really Jewish State and a new flag. I am a goy, I simply wore a tiny flag on my clothes. When Sharon decided to expell Jews, I added a little orange ribbon besides the flag. I also had an Israeli coat of arms in my livingroom. I kept it untill the last second of Gush Katif. I hoped Israel would repent at the last minute but....
So I just removed the flag and the coat, and kept them with respect in a drawer. No desecration, but no exhibition. Only the orange ribbon remained on my clothes for months, untill it became obsolete, since today noone remembers the orange ribbon as a symbol of support for settlers.