The current flag is indeed awful. The Confederate flag is iconic, no doubt about it, but it's an icon with too many negative connotations. Also, it's a bit weird that rhomboid shape inscribed in a shield, isn't it? I'm just checking state flags and I must say most of them are uninspiring. Georgia have had different flags across its History. Between 1956 and 2001 2/3 of the surface was occupied by the Confederate Battle Flag. That's what I call a declaration of principles. Anyway, the coat of arms looks nice. The Tennessee flag has an interesting design:
However, New Mexico has the best flag by far:
I'd like to find something as iconic as the Zia Sun symbol in the center of the flag above, but it's not easy.
Do you like the Volgograd Oblast flag? The woman with the sword reproduces a colossal statue ("The Memory Calls") in the war memorial that commemorates the Stalingrad battle. Doesn't she resemble a bit the Statue of Liberty?