Wording is EVERYTHING in humor. Look what is said...
"The flag draped coffins don't look so bad now."
Not.. "The coffin flag scandal...", but "The flag coffins don't look bad.".
If it does mean what you say, then the cartoonist needs to be more clear. Because to me, the CLEAR message is "The flag draped coffins don't look so bad".
But, as was said before-- tasteless either way.. Just different degrees..