I hate to rain on people's parade here, but, this sequence of syllables doesn't seem to fit the video entirely. There seems to be one, maybe two more syllables right when Mrs. Obama starts to talk, that is obscured by some structure in front of her.
She could very easily be saying "what reverence for the/a flag, wherein "rev-rence" has the same rhythm, and quite possibly facial motion, as "all this,"
All I'm saying is, if such a charge is going to be leveled, and that's one hell of a charge to make, given who she is, I think it would be wise to make damm sure that you're correct. Otherwise, you just bring shame upon the forum.
I read her lips as saying: “They should have washed the flag”
I can’t wait for 2012!