What they should have done is let the commission come up with ideas without any limitations or requirements and present them to the state not as a referendum but as polling. Then take that under consideration and let the Legislature vote.
Depends on how we define significant. It's certainly not 50% or even near that. I bet there's 20-25% of people who really believe that has no place on our flag. Personally, I don't care all that much, but it seems like an unnecessary thing to require that causes unnecessary division.