Hello again, so this guy has an Id flag he says grommets are made of steel which I don't know but people have said that could be a sign it's fake due to steel being an important metal used in the war. Any thoughts

They used brass and zinc grommets on vehicle ID flags. What does the edge of the long side look like? 
 
 

Here are some more pics. 

It looks fine to me. Looks like rayon material. It's a very "flouncy" material.  I'll admit the use of steel (if that is what it is) is odd, but these ID flags were generally used early on (when they had air superiority) so the use of "better" metals doesn't throw me.