I think if an evil entity sees lots of flags they don't like, they will probably begin to attack the application or give you lots of problems till it's destroyed.
There is nothing wrong with having those data, but it should only be used when necessary
There is nothing wrong with Flags there, as it shows the traffic coming from a country. I think it is a very useful info for those who want to know the incoming traffic location. I don't think it is to encourage competition. It will help advertiser's more who wish to buy advertisement credits on these dApps.
Looks like tron is picking up on dApps. Most of them are related to gambling.