I'm American I never really cared about the flag. Until I saw someone burning it on TV. I can't explain why, but that infuriated me. It's like they burned what our entire country is supposed to stand for. All our ideals, all the dreams of the people who died for the country.
I think Americans care about the flag because it isn't just a piece of cloth with pretty colors. It's a symbol every part of it stands for something. Also in the way we became a country. We fought hard for it. We were outmatched, and the flag has become a symbol of perseverance and pride to the Americans. That people untrained outmatched, and frankly outnumbered could do what they did. To Americans our flag represents not only the states and colonies, but heroism, bravery, pride, perseverance, and of course liberty.
Again I don't much care about folding it and whatnot, and I find a tattered flag to be even more symbolic because of what our flag saw as we fought for our liberty. I don't own a flag either.
Now that I'm done preaching. Once in school me and a friend were elected to raise the flag and lower the flag every day. Our first day we go out, and it's cold as hell. We raise it, and by lunch we are told that we raised it upside down.