It is just a gimmick. How hard has it ever been for the WWE to just change gimmicks for someone no matter how bad they. Look at Helms he was a superhero, and now he is just something more realistic.
Picture this, in the middle of Paul's bashing of the Hart family, the British Bulldog, the British Bulldogs, and the DH Smith out comes Gabriel dancing his way to the ring. Interupting Paul who looks pissed. Gabriel continues his dance for about 30 more seconds or so, and then out comes DH Smith running the ring. Smith does the head first slide in to the ring, stands up ready to get in to Paul's face when out of no where Gabriel nails him with a pair of brass knuckles. They pound on Smith who is split wide open.
They take the flag of England, and more importantly the British, and rub Smith's face in it. Gabriel gets on the mic, and declares that it's *****es like Smith who give their great country a tarnished name. He goes on to say that this isn't about "nationalism", but about winning, dominating all who stand, and establishing themselves as the very best tag team to ever grace the center of a wrestling ring.
No, they don't need to come down to the ring with flags as that would just be to typical of thing to do. I wouldn't want this tag team's focus of gimmick be primarily "Us v.s them" thing. We don't need another USA v.s UK thing anymore they are so 90's. Just a tough, hard-nosed, tag team who happen to have an english accent.