Makes it no less tacky. I cringe when they drape themselves in the flag when they win an event. If you're not a first responder or in the military, it's really a breach of flag etiquette. But as I said, most people don't know or don't care. Some do.
Take from USFlag.org
No part of the flag should ever be used as a costume or athletic uniform. However, a flag patch may be affixed to the uniform of military personnel, firemen, policemen, and members of patriotic organizations.
So when worn to show respect, it falls under the "patriotic org" clause.