I too would be concerned about the fabric content of the flag. It may even be washable but for me my biggest concern could it withstand the dryer.
The panel that IrishRose has in her quilt is on ebay
http://www.ebay.com/itm/USMC-PILLOW-...item20e5bf1aba
... if you wanted to you could applique that emblem from the pillow panel on a red background with the four applique stars and that would be very close to how the flag looks and it would be washable and dryable.