I have never seen that type of flag. Cool.
I am more use to seeing the typical wind sock that you see at airports.

I agree and have been saying that (for-just about-ever) that having a camera fixed on a wind flag/sock would be far superior to having a sensor. Let's face it, for our purposes, most of us just need a lower threshold to be broken (for me these days, around 15 knots) to make it worth going.
I don't need to know the absolute wind-speed (the wind sensors don't supply it with accuracy anyway). I just need to know it is more than a certain value. Once I get there, I will rig accordingly. That's what wind socks do, tell you it is "more than".

If the camera focused on the windsock took one pic every 3 minutes, that'd be all we would need. That would be light years superior to much of the sensor info available to us on Imight that only updates info once every 2 hours and most of is is way off, anyway.

To add to it (pass it on to SF) you could put a very light, large adv. flag on top (like Randy's Best flags). Those things are fully stretched out in 5 knots. This would mean that every time a person logged on to see the wind flag in action, they would see a literal banner ad in the form of the larger adv. flag up top. That could help to pay for the installation, possibly.

No brainer for a shop/brand involved with wind-sports products to get advertising and provide a useful service.
Same idea as gulfster's wave-meter.