This isn't happening in the UK. I suspect the "british press" refered to is one newspaper favoured by neo nazis and gullible bigots who are too stupid or too lazy to think for themselves. Yes we do have some vandals and criminals who do appaling things, just like every other nation on the planet, but these are a small minority.
If anyone wants to fly the union flag no one will stop them. If you want to shout "I am proud to be british" you may get some funny looks from your neighbours, but no one will stop you. Not many people do either, as we are a bit reserved and as an Island nation we know what country we are in.
As for "Great Britan no longer exists" , that's utter crap. A nation is it's people, not a few boats. Great Britain has enriched the world with It's creativity in arts and science. Other nations have achievments which they are proud of, but this relatively small nation has been disproportionatly blessed with talent.
The country may be in a mess at the moment, but we've been through tougher times and come out stronger and will again. I am proud of my nations past and have faith in it's future. I wouldn't live in any other country. I may not wave the flag often, but I don't need to. When you know you are the best you don't need to flaunt it.