Yeah, I think it looks pretty good. Definitely think the flag wouldn't be missed. I really like the "Do Not Drink Sediment," short, to-the-point, and kinda funny.
As for labels, I just print them on regular computer paper and then apply them to the bottles with milk. Carefully use a paintbrush (or anything really) and put a thin coat of milk on the back, trying not to get any on the front. When the milk dries it leaves a good seal but will fall right off with a quick rinse. Not good for bottles that will go in a cooler though: all your labels will be floating in minutes.
One last thing, quit drinking Keystone Ice, haha. Nah, I can understand that though, college is not cheap. It is better than Nasty Ice.