Fine stitching is, indeed, a hallmark of period flags. One of the sure signs of a fake flag on eBay during the 2002-2007 time frame was the crude stitching of the stars on to the flag (obverse only!) (These "decorative reproductions" were legitimately sold in the $200 to $400 range and then resold fraudulently on eBay as ACW period or "late 1800's veteran's era" flags earning bids of $1000 to $4000 from eBayers who saw a deal too good to be true. Enough buyes got burned, and enough knowledgeble collectors complained to eBay that these and other ACW fakes are somewhat less blatant, though still present, on eBay.)

I have included a link to a photo of my ACW period 5 inch by 7 inch hand made flag of 35 stars. The stitches securing the 13 stripes together are barely visible.