Twitter has associated flags with countries for the WorldCup in tweets using the country hashtag. Screenshot shows #MEX vs #FRA updates. Chris Parillo shared the World Cup Country Flag List.
You need to be on Twitter via the Web to see the flags. At least that's what I think, because I don't see them when accessing Twitter stream using "twhirl" by Seesmic. I only learned of them as a result of a rare "check-in" via the Web interface.
I hope Twitter maintains its #hashtag flag support. How cool this would be during the Olympics! That breeds another thought ... Will Twitter be around for London 2012. My guess is "Yes!"