No, that flag still represents what it has always represented. What you're saying is like saying the swastika no longer represents paganism.
The traitor flag is more than just the issue of race in America, though it does touch on that in a negative way as well. For those not dark-skinned it is still a symbol of treachery and betrayl.
For those that are of African descent though, of course to them it is a symbol of that unjust slavery and of the racism that followed after the defeated of the confederacy as it was still used as an intimidation symbol against them for over a century. Even the particular flag from South Carolina that was brought down was put up for the reason to promote segregationism.
https://www.youtube.com/watch?v=owiuIB8j5v4
[video=youtube;owiuIB8j5v4]https://www.youtube.com/watch?v=owiuIB8j5v4[/video]
"What other country actually flies the flag of some traitors that they actually beat in a war?"