Not a bad first draft stormfox, the 3 elements of the light blue sky, palm tree and corner sun work quite well.
You may wish to add more design elements. Such as a sea line to the bottom of the flag.
Looking at the your flag design, you have a good position for the palm tree and the sun.

However there probably isn't a need for all the writing, if you're going for a flag design, flags usually don't have alot of words on them, although there are some exceptions.
As I said your composition of the flag is good, since where you've positioned the palm tree, whether or not intended fits 'The Rule of Thirds' composition technique which is used to make pictures and photographs more interesting.
http://www.photographymad.com/pages/view/rule-of-thirds

To make the palm tree more interesting perhaps consider giving it a curved tree stem so that it curves towards the sun.
I would reccomend also having a go at making a basic flag in minecraft as well, you can strip the basic design elements down and simplify them down to the block level to see how well it looks.
Hope this helps.