I decided to try one of these. Attached is my version.
I used walnut and butternut for the stripes. The star field is a piece of local wood I don't know the name of, but liked the grain. I sealed it with shellac, coated with liquid mask and vcarved the stars. I then painted the stars, removed the liquid mask and glued the whole thing together. Everything was coated with a clear polycrylic. The banner is from locust and the letters are painted with metallic copper glaze paint after liquid masking the carved letters. I carved them with a .06 ball to leave a slightly rounded bottom. Flag is about 22" long.
Vectric Aspire, Cut3D, VCarve Pro, AutoCAD lite, Draftsight, Corel Draw X6, ViaCAD Pro 9, W 10