Hmm, I like the idea of showing the marker of the flag when dropped. Players will be drawned to that location which will bring alot of fighting action which is a good thing.
On CTF5 when a player reconnects and has the flag, the flag will respawn back at the team base, on CTF4 I dont recall but I believe it's the same. It's either that or it just drops on the location the player was when he disconnected.
I think we can easily show players with the flags on their backs or on their hands when they capture it though. We would just have to create a few custom player skins that look exactly the same as the ones we use now with a slight diference of having a "flag model" attached to the player skin, then we can change the player skin with .setSkin() when they captured the flag.