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yes and no.
Yes because its easily spotted. yes because it keeps you in one location.
but no, flags are not useless. If your looking to protect your gear/tents/car then a flag is worth the trouble. Without it, you will loose ur walls eventually, letting anyone in. That barrel that has all your important tools. ahh well that despawns too. Just giving a few extra days without having to log in because your real busy in RL to do so is worth it.
The flag is fairly easy to make minus maybe the large stones, but even that is more of a a pain the butt then anything.
If you are gonna put roots down in one place for a bit, why would you not throw a flag down?