I don’t like it, because I don’t think the families realize what could be done with those photos as soon as they are released out into the wilds of the internet. The enemy will use these photos, as well as those organizations that are politically motivated, and I am not sure that the use of these photos will be treated with respect like the families would hope for.
So with that said, I would put it on the soldier or even contractor, if it is your wish to have your flag draped coffin photographed for all the world to see and do what they want with. Personally, my wishes are for my coffin and funeral to be a private matter. My headstone will be there for the entire world to visit, if they think it is that important to pay their respects. But all in all, I would not want that photo being used by some anti-war group, or the enemy for propaganda purposes. That is just me though, and my sacrifice is a private matter between me, my friends, my comrades and my family.
This also brings up another point about this war. What of the contractors that die? If a Ugandan guard or Pakistani cook gets killed while working in Iraq, are we going to cover their coffin with their country’s flag and ask their family if it is alright for the media to photograph it? Or are we just shipping contractor bodies back to their home country using Fedex or whatever, and not caring what happens after that? What is the dignified method of sending them home? Or will that take another 8 years of war to figure out what to do with dead contractors?