I think this is a good change
Military.com had this on their site last week-
Legislation Would Allow Salute to the Flag
Week of August 13, 2007
Legislation sponsored by U.S. Senator Jim Inhofe (S.1877) clarifies U.S. law to allow veterans and servicemen not in uniform to salute the flag. Current law (US Code Title 4, Chapter 1) states that veterans and servicemen not in uniform should place their hand over their heart without clarifying whether they can or should salute the flag. The bill passed in the Senate recently by unanimous consent.
I think it's a good change. I know many vets with the Patriot Guard Riders who are happy about it. We were discussing it a bit at the Illinois Gathering of the Guard last weekend.
I'm just cynical enough to wonder what the anti-military Left thinks about this though...