Max,
Yes the flag as a symbol can stand for many things. Just like the swastika. The thing is the that meaning currently given is one of a Southern White Identity that downplays the oppression and enslavement of others based upon race. The only "state's rights" the South has ever stood for is the right to oppress others.
I know as an actual libertarian you stand against such oppression.
Now let's take a look at the reasons you list:
1) regional identity -- actually regional white identity. The symbol is not inclusive and represents an identity that ignores a large part of it's population.
2) economic security -- you are going have to explain this one. I have no idea why it represents economic security. I've never seen it on a financial website.
3) state's rights -- As pointed out above the only state's rights it signifies is the right to restrict the rights of others.
4) racism and fear of racial retribution -- undoubtedly.
Perhaps some of the confusion with you and others stems from some of my imprecision. So I shall try to be precise:
a) There are two categories of 'meaning' to any symbol...the meaning intended to be communicated by the user, and the meaning received by the observer. Once the observer understands the meaning intended by those communicating it, there is no other meaning, i.e., unless the observer is disingenuous and pretends the symbol's use meant something else.
And what WE think is communicated TODAY in 2015 can be far different than what was actually communicated in 1860. What we call "racist" (a concept from the 1930s) has little or no meaning to those of the flag's originating era.
IN 1861:
b) The battle flag of the Northern Army of Virginia, the bars and stars, were derivative of the US Flag (as were several versions of the flag of the South). At the time it's makers and users intended to convey a new unifying national identity: that of a confederacy of states who wished to be free of 'these states of the US' identity and Yankee rule, and who wished to allow slavery on a state by state basis (hence they adopted the then current US constitution).
c) The flag was the new identity of the South. It was a symbol that represented a unique aspiration and fear of that era, the most important of which was to protect their political freedom and the economic institution of chattel slavery. While everyone was racist (including Lincoln) by modern definitions, the North increasingly insisted on ending slavery and providing equality before the law...even for the seemingly inferior slave.
The Confederacy, if anything, represented those differences between Northern and Southern. Remember that racism was normal for either the North or South - most in the North and South believed black people to be inferior and the modern concept of, and rejection of, racism did not exist. However, the South wished to represent what made them different, to represent the denial of human freedom and liberty to black slaves, and the protection of an oppressive economic arrangement the South depended upon. In short, for the people of the era, the flag could similarities with the north because that was not what was intended to be conveyed, nor what observers of that era get that got as a message.
In short: the flag did not represent OUR differences with the racist people of 1860 BUT their differences with each other.
NOW in 2015:
The confederacy and the flag for almost all who use the term and symbol are intended to convey a long lasting regional identity. It is nostalgia for a partial fiction; that of an agrarian, bucolic, and mannered society or, for others, a fierce independence from 'the Yankee' - be it in religion, trucks, food, dance, and/or music. It is a distinct pride in being of a different sensibility.
Almost no one who displays the flag really thinks it is a support of a new Southern nation or slavery. And most rational people know that. In fact the majority of Americans see it as nothing more than a flag of heritage. For these folk, the message conveyed and the message received is identical.
There are only two groups who want to believe otherwise; the tiny number of white supremacists using the flag (and the American flag) allied with the larger number of white liberals and many blacks who WISH to believe it is the main message. The real question is why would they want that? Why would they wish to misconstrue the intent of those who fly it in State capitals ?
That is the real question.