Unfortunately what you delved into is a key challenge in trying to figure out the applicability of law. After all, there are flags... and there is art! The first flag I posted could be construed as Art. While it generally resembles a U.S. Flag, it has artistic elements to it. My guess is that is exactly what the Obama campaign is going to claim... they'd be crazy to do anything else.
The second flag, on the other hand, cannot be construed as anything but what it is. It is a U.S. flag with Obama's face in lieu of a field of stars.
We, as a nation, villify foreigners who take the U.S. flag and desecrate it. Yet the Obama campaign re-tools the same flag in his own image and there are some who are OK with it. Odd double standard, isn't it?