The flag should NEVER touch anything beneath it. Contrary to an urban legend, the flag code does not state that a flag that touches the ground should be burned. Instead, the flag SHOULD be moved so it is not touching the ground.
Unfortuately, the Flag Code has no provision for enforcement. No fines, no penalties. There is nothing law enforcement can do when the Flag Code is broken.
I know of a few things that would have been broken if I were there (noses, knee caps, etc.) The Flag is a symbol of our Great Country. Desecration should not be tolerated.