Yes, Rebecca, the scouting programs do teach the proper handling of the flag, etiquette and ceremony.
My son's Boy Scout troop also collects flags about once a year that need to be retired. They officially "retire" these flags with a ceremony,( they learn ceremony well in scouting) , and properly dispose of these well worn, weather-beaten old flags. (don't ask me what that is- I just help collect the flags and turn 'em in.)
We participate in decorating the graves at the Marietta Nat'l. Cemetery on the Saturday of Memorial Day weekend. Imagine swarms of scouts, boy and girl, working feverishly to decorate each grave marker with a small flag. There are over 10,000 to be done, and it takes them maybe two hours. Last year I overheard a tiny Girl Scout scolding a Boy Scout probably twice her size for putting his extra flags on the ground while he was working. Too funny.
So, yes, some kids are getting that same education. And, yes I learned how to fold the flag as a kid but had to be reminded when we started doing scouts.
And, yes, those that know will not hesitate to tell you if it is framed or folded wrong.