Perhaps something could be both? When I lived in the US, I used to occasionally wear Union-Jack themed clothing, but it's not something I would do in England, even if is was constructed in non-traditional colours, or designed by Fake of London. I'm not sure why. Perhaps it just seems too patriotic.
It's no surprise that Soviet Kitch is becoming chic. In Russia, It's obvious why this somewhat irreverent fashion was not allowed, during the Soviet regime, but are Russians far enough removed from the history for it to take off now? This article in the NY Times says it is so.