The amount of controversy is getting overblown by the media causing this to become a bigger controversy than it really is. A few "Fox News" demographic types ran to twitter and facebook to talk about this ad. And when I say a few, I mean a small percentage of the Fox News demographic.
No one is dumb here though, everyone knew that the same people who were upset over the Cheerio ad that you mentioned would be upset over this ad too. Coke made this ad to be controversial to this crowd. I'm not saying they are paying the media to report on the "controversy" but it is exactly what they are hoping for and will play no part in trying to stop it.
I guess this Australian TV clip explains it better than I'm going to:
Edit: also America the Beautiful is just a song. The Star Spangled Banner is the U.S.'s national anthem.
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