What were those southerners fighting for then, if not states rights/sovereignty and protection of home and values against the North? According to this guy (writing for the VFW but hosted on a daughters of confederacy website lol
http://vaudc.org/confed_vets.html ) only 6% of the South owned slaves, and 3% of the south owned the vast majority of the slaves. Now that's 6-3% of civilians, not soldiers. If you think that the top 3% of civilians who owned the majority of slaves were the same dudes in the front lines with fixed bayonets, I got a bridge to sell you. Johnnie Reb with the rifle was the poor farmer making up the other 94-97% of the Southern civilian population that could barely afford a piece of land to farm, let alone a slave. If any slave owners fought, they were probably generals or high up in the officers corps. It's kind of ridiculous to think that the 94% of the population who did not own slaves would all rise up to protect the big-wig plantation owners' abilities to use slaves.
Hell, before the war the politically-connected plantation owners put up literacy tests to keep the poor white southeners from voting because the latter would have better opportunities and a level playing-field to farm if slavery wasn't allowed and the big-wigs would have to pay them instead of using slave labor. Even if they weren't literate, it's difficult to think they were still so stupid that the average southern man couldn't see this for himself.
As far as racism goes, it's also a complete joke to think that the North was all roses & daisies towards blacks with feelings of complete equality. They didn't use slave labor, in part because their economy couldn't profit from it. The abolitionists were an exception, not the norm. Today of course you have everybody (well, popular figures who like to claim responsibility for the actions of their ancestors hundreds of years ago) claiming that they come from a line of abolitionists and civil rights leaders.
In my opinion, the Confederate flag (if you call it the correctly titled BFNV, no one's going to know what you're talking about) is used by many Southerners to represent Southern tradition and standing up against Northern Aggression.
Many of these people have traditionally held racist views. My dip$*** boss is a flaming liberal, and even he admits growing up in SC that they used to refer to blacks as n******s in a casual manner. Racist or not, it must be acknowledged that the Confederate forces fought to preserve their idea of how the country ought to be. They felt completely disenfranchised by the North and took to heart the quote of "The tree of liberty must be refreshed from time to time with the blood of patriots and tyrants." Sadly, this included the right to farm with slavery, but those who actually fought were in no position to profit from that in the slightest. There's no such thing as Boston Hospitality or New York Chivalry. The South had a completely different ethos and way of life, and that's what they fought to protect against the North. [I am from the West coast so I don't really have a dog in this hunt, although I do hate liberals with a fiery passion]