I've spent weeks ruminating on this flag indicator and i never thought of that solution. I went from convoluted servo arms with hinges and have settled on the simplest solution i could think of. This.......
You can see some of the ideas i had on this image. Although i haven't powered it, i have tested the rotating circle and it looks good. The other advantage to this (other than the simplicity) is the discs can actually overlap inside a housing. This means that i can stack the servos, close to each other. I have to figure out lighting but i don't think that will be too hard.
This is the latest simpit mockup. Comments are needed at this stage....
Latest mockup