I wouldn't call the flag waving "muted" - "animated and jocular" is more how I'd put it.

Dame Edna Everage frequently has as a climax to her appearances in which she had gladioli distributed to the audience, and then on her command they wave their gladdies in the air while a patriotic song is played.

That was very much the feeling with the flag waving, especially at the concert, where it so happened (except that in an event like this it is never "so happened", it's intentional) Dame Edna was on stage to announce the Queens arrival to the concert.

Not that being jokey means it's just a joke. That's something the English know - or at least, most of them seem to. (There are exceptions of course - and one of the most disconcerting things about the Thatcher years is that the country was under the control of one of them.)