If you had a place on a point as I do, and you have watched boats pass within 25 feet of your dock while children were in the water, you might have a different opinion. I have used a diving flag to keep boats away and quite frankly, if it works, I don't care if it's illegal.
But I don't use a diving flag anymore because it's counterproductive. Some boats are drawn to the flag out of curiosity. An inflatable boat works better. And moorings have another use other than a place to tie up a boat.
However if you have swimmers in the water and one of them is using a snorkel, the law REQUIRES that you use a diving flag. This may be the one rule that is broken more often than the 150' minimum safe passage rule.
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