You are judging work by somebody who doesn't feel compelled to follow guidelines made by other people with those very same guidelines. Those other people looked much more closely at flags for geographical entities, not movements, to come up with their guidelines. No one is required to follow them or retroactively abide by them. They are a great style guide but not the law.
Every flag serves a purpose. This flag's purpose is to show representation by color and design for everyone in the community. It's was the point to be busy.
Why don't they just stick with the rainbow flag? Because the idea of the rainbow encompassing everyone was made at a time when gay and lesbians came out with pride but many of the letters that abbreviate that community today were still marginalized more harshly, maybe even within homosexual circles. They weren't all suddenly anthropists and free from discriminatory points of view. Development of ideas and communities takes time. And that's why an artist took ideas from many different flags that were created over time and combined them into one. It is eye catchy and instantly recognizable, even at a medium distance still.
I don't find the result aesthetically pleasing either. But I recognize a) that wasn't the point of it and b) I'm not a member of the LGBTQ+ community. If from within that community a movement rises to change the flag into something else, by all means. Other than that my design opinions - and I suspect many other ones in this thread - are largely academic and frankly irrelevant.
Good flag bad flag is not the gospel. Take it as a starting point for new designs but don't scrutinize all existing flags by it.
First of all, this isn't enshitification as defined by Corey Doctorow. This has nothing to do with an internet platform getting worse because the priorities of the proprietors changed.
I don't think it's entirely fair to blame Google for this. None of these companies do this for entirely altruistic reasons. At the core of the problem is funding in education. Google saw an opportunity and jumped on it. When given a choice that kids get no computer hardware vs. dumping price Chromebooks I would still vote Chromebook. Get your politicians to set aside less money for tanks and more money for education.
Besides, no one is stopping kids from exploring other platforms. Google is looking for an infrastructure lock-in, get them locked in while they are young, but you can go do other stuff. It's also a question of financial means and interests. And they don't need to do LAN parties because they already have Fortnite and stuff. Life moves on. Your childhood was also markedly different from your parents'.