Armenia v Azerbaijan was actually secondary billing in this Eurovision. (and there was definitely some Azerbaijan reaction in the press conference after the semi)
Top of the bill was Ukraine v Russia.
The whole flag issue was building up before the contest anyway. First saying that people couldn't wave regional flags and then saying that regional flags of performers could be waved, and maybe even others. The proviso given was that it couldn't be done to inflame tensions such as waving a flag during any 'adversary's' performance. So waving her regional flag didn't have to be considered inflammatory. If they were given guidance before the contest not to wave it when on camera then I could understand some action, but did that happen? In the end I find it all rather childish and certainly very selective. A flag is just a flag I suppose. But it's obvious to me that the organisers are very inconsistent. Israel did a peace song after bombing Palestinians, Russia has done peace songs after wars, Ukraine and Armenia have both done songs about events considered to have continuing political repercussions to some people. History IS political, because it's always used by politicians for their agendas in the present. Either ban all songs relating to such things, and make all songs strictly on personal issues or make it a free for all. Be consistent.
My own feeling is the Eurovision organisers get a bit too big for their own boots, and with the frequent 'coming together' themes actually want it political in a way, but only on their terms. Refugee interval, waving EU flag, gay flag waved and questions on that in press conference etc. They want stories not just on music but on whatever issues they like or they feel promote their 'brand' (in their words) how they want.