A demonstration is indeed a different circumstance and does not directly address the town-square-test issue. Nevertheless, scenes like this are nowadays frequently seen in Britain and would seem to make it implausible that the British police would harrass an otherwise nonthreatening person solely for wearing a Hezbollah flag in a 'town square' situation. It is still more implausible, on general grounds, that in Britain such a person would have cause to fear assault by supporters of Israel, for that is simply not a stance that is condoned, let alone adopted, by such factions.

Having said that, the two situations would not, in fact, be remotely comparable. Supporters of Iran and of islamic terrorist organisations frequently threaten actual violence, against British people, in Britain. For instance, there are the threats against Salman Rushdie's life, and the repeated threats to behead infidels, bring 9-11 to Britain and so on. And there has been actual mass murder, and attempted mass murder, of British people, in Britain, in the names of those causes. If British law were to ban the incitement to commit such acts, whether by wearing flags or otherwise, this would in no way violate the town square test.