Thank you for the thoughts sailboy21.
Here is a picture of someone's boat flying their flag much higher, I don't think it looks tacky. Well, correction - yes, it looks tacky here, but that's because the flag is too big for the boat, but I don't think having the flag up higher is tacky. That's basically what I'm asking about, just not huge and obnoxious like this.
Edit - I certainly wouldn't want my own countries flag to be any bigger than the courtesy flag.