this has nothing to do with the state flag though, as far as i can tell. it seems like a decent branding system... not exactly titillating but better than i've seen in most other states.
Tennessee and Texas are good examples of State Flags. When you drive through TN, the iconic three-star pattern is found on a lot of bridges and signs now (similar to the Chicago flag being seen everywhere around the city).
Washington, by contrast, is a terrible terrible flag (flags shouldn't have words or state seals on them; you need to be able to identify them from a distance).
This is an okay start, but it should have included a flag redesign with it that matches the new state branding.
That being said, NZ has a recognizable flag (although it's too close to Australia's for sure) and it's not a bad one. By contrast Oklahoma's is really bad and I doubt there are many would would feel compelled to hang onto it if a new one was on the ballot in their next election.