I'm not saying the flag should be gone. Just, the players choice.
So you're 24/7 flagged person would just... turn on his flag. Easy as that.
My choice, yeah, but it limits my options to help other players, easily traverse the map (stealth an imp base shortcut).
I also don't see why it should persist after a meddroid respawn. If not it immediately fixes your issue of spawning in a camp with enemies abound. And you can freely turn it on again if you want... since that's instant (unlike turning it off).