You will probably be able to turn them off, but flags are as helpful in scaled fighting, as they are in real battle. This is especially true of the newer hires games, where troops are less de-visible from their backgrounds at times. And doubly true in real time battles, when there is no time to do an identification mouse-over.
Plus there is the added bonus of being able to tell at a glance if units are routing, as their flags turn white.
I personally would like to see the return of the waving banner (up and down), showing when units were selected. This would get rid of glowing ground arrows that I also find spoil the mood.
You see I cherish those special moments when I forget I am playing a game, and become so immersed that I feel as though I am there, in the battle for real. Things like oversized banners, green arrows, and flash cuts, break the spell. And I would rather do without them.
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