Right, arguably what the Confederacy truly stood for is State's Rights, which is a totally good American thing, right? It's part of what our country was founded on!
It just so happens that their flagship "right" was the most evil and hateful thing to have ever happened systematically in America. That's why the defense of the flag falls short: in broad scope, it stands for something that really is actually kind of good. But when you take into consideration the details, it's racist as fuck.
Edit: to add on, this is the same argument as "Hitler had some good ideas". Not technically untrue, but they're far from the ideas Hitler as a figure really stands for.