It's always been accepted and proper, here in the US , to fly the flag of the US above a flag of another country.
This respect should also apply to people calling themselves _______- American.
Examples:
Asian-American, African-American, Mexican-American. They fly those flags above our American flag.
Proper and respectful would be, American of Asian persuasion
American of African persuasion
American of Mexican persuasion
Etc.
Completely disagree with you.
You are trying to make grammar obey political rules.(Not even correct ones).
It has nothing to do with placing one thing above another.
I don't think that flying flags means what you seem to think it means either. If anything, flying your "favorite" flag above another to show you LIKE that place better, is a sign of DISRESPECT to the other country.
The reason to fly the American flag above the others, while we're on American soil, is because we're on American soil. If you do that overseas, just because you are American, you will be disrespecting that other nation.
The hyphenated-American positioning has been as it is since well before modern Americans looked for reasons to be upset with other Americans.
Besides, the fact that "Americans" comes second, means that it is the PRIMARY label for the person. That's how the grammar works. Not the way you seem to imagine. The first word is the MODIFIER. The second is the IDENTITY.
Think of other things you say. Such as "I drive a white car." If we followed your thinking, we would all say "I drive a car white." Which makes no sense.