Leave the Utah flag as is. I'm proud that it hasn't been altered much since it was made.
So what if it hasn't been used in clothing? That's a good thing. Also, if you don't understand or know what its symbolism is, maybe you should learn about it. Maybe you should Google it. The proposed design shown does not inspire or make any sense that says Utah.
I say again — leave as is. I believe there are much more important things to be doing.