Simply put, the blue flags in Silvermoon City are a slap in the face to any lore savy Blood Elf fans or players. It makes utterly zero sense that the majority of the city, even areas like the “Garden of Remembrance” has blue banners. Blue banners are literally what the Blood Elves used to have before the Scourge Invasion. The banners were changed explicitly to honor and remember the fallen.
I understand the gameplay reason for needing flags other than red in the neutral parts. So, then why not go with an actual neutral color like grey or black? There’s an actual precedent for neutral black flags with the Shattered Sun Offensive from the Burning Crusade expansion. Please please Blizzard, as a little acknowledgement to actual lore buffs, change the flags to a neutral color. It’s one asset copy pasted all over Silvermoon. It’s a fix that could be done in less than a day.