I think it is beautiful!!
He must not understand how much work it was to make it for him. Let him know that if he does not want it you would like it back. Then if you want you could keep it or donate it to a Veterans of Foreign Wars/Legion and they could sell raffle tickets and make a lot of money. It is patriatic.
I'm sorry he hurt your feelings. My parents raised me to say a thank you even if it is not what I wanted.