I agree with those who see no real problem with it. While there is the “technical violation” of the flag rules, I like the symbolism of the photo. There is nothing disrespectful about it and promotes the idea that the child is born into, and protected by, the freedoms the flag represents.
Just try to do something not offensive (make a flag out of fire hoses, cradle a baby, heck even try to hang one on a college campus) see where that gets you.