I have a dive flag and respect them as should everyone. As a diver I always check my surroundings. Being underwater in smith cove on a weekend probably comes close to the noise underwater of a u-boat being chased by the fleet in WW II. With that being said, I always surface by climbing up my boats anchor line. But if I swam out from shore and just had a dive flag, that's when the rule makes sense. I wouldn't have a vessel to protect me, but I am underwater and can not be seen, except fo my bubbles and I may pop up at any time. I believe this rule holds true for a snorkeler who may dive every so often. They should actually have a dive flag, but rarely enforced because its hard too.
It may not be a bad idea for the boats out floating to say tell they have swimmers in the water. But I think majority of the people who swim off there boats stay quite close. Plus there is the 150 ft rule and I think you need to have some vision to operate a vessel. So is another law really needed ??
I can imagine going by brawn bay and seeing all those, "swimmer flags", flying. To tell the incoherent passerby that people may be in the water swimming. I guess the NH legislator came from the retiring MA legislators. I think we need a underground highway to make it easier to get thru Manchester.