"Second, there is an unwritten rule for servicemen (ATG, CMDR Mark help me here) that if the flag patch is backwards, this means one has been OCONUS? "
Never heard that one, and I’ve spent large portions of my time outside of CONUS.
I never heard that either, but what is true is that is you cross the equator you get to wear an earring.
Aaarrrrhh
"I never heard that either, but what is true is that is you cross the equator you get to wear an earring. "
Nope. I believe there used to be (and may still be) a rule on the books in the Navy that if you were the sole survivor of a sunken ship, you were authorized to wear an earring in uniform, but that may just be legend. As for crossing the Equator, well,…I’m not at liberty to comment on the secrets of the venerated Shellback ceremony. 
Gentlemen, that is a green aviator jacket per Air Force (maybe Navy uses it too?) regulation his flag is perfectly fine. I know I wear one every day.
I wear one too (USAF space cowboy) every once in a blue moon, with the flag reversed - signifying OCONUS (overseas) duty.