I didn't find any of the three options acceptable. The second option says that it should be kept as a symbol of southern pride, but the reason it shouldn't be banned is because people have a right to free speech, to demonstrate however they please, and to use whatever symbolism they please.
If it cannot be proven that it directly causes sedition, some form of violence, etc. then it is plainly a fundamental disagreement with constitutional American values to suggest that it be banned simply because we don't like it. There is no reasonable correlation that it significantly contributes in any way to hate crimes, so banning it would purely be a concession to sophomoric sensitivities. There is a cost to such rights, and that cost is that we must tolerate all manner of less palatable images and ideas. This is because those rights are a bastion between us and barbarism.
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There is no wealth like knowledge, no poverty like ignorance.
Nahj ul-Balāgha by Ali bin Abu-Talib