The blue area seems to be a little small. Why do you say "Of course if we adopted it, some right-wingers would say it means were going commie, or something like it."? I have seen a lot of original 13-star circular flags in the possession of people that would self-describe as being on the right.
I think it's because of who proposed it: the New Progressive Party of Puerto Rico, according to Wikipedia in the "51st State" article.
I like the arrangement, too, but I can see why its provenance might taint it in some eyes. That's unfortunate; it's a much more pleasant arrangement than the one we currently have.
I could also see people objecting to changing the US's hundred-odd-year tradition of having ugly and grating arrangements of stars. :) And the circular star arrangement _is_ something one tends to see flown by sinister US successor states like those in _Fallout_ and _Jericho_...
The New Progressive Party is the right-wing party in Puerto Rico. It was founded by Republicans and most of its leadership is affiliated with the Republicans.
It's the left-wing parties of Puerto Rico that are the ones that favor free association or independence instead of statehood.
After reading the article I was going to suggest the same thing. I think the radial symmetry is much more pleasing and I like the nod to the original 13 star flag.