For alignment purposes, maybe a "blank" banner for the armies who haven't picked one and another for unassigned units could be set?
A "blank" transparent banner should be trivial at this point. However, I've also been toying with the idea of a "realm banner" for militia and nobles who aren't in armies, settable by the Ruler, obviously. I'm not sure about it, though.
And I don't think it should follow if you buy banners at all, it would translate as a graphic representation of something we don't really care about. Better just have everyone's banner displayed.
Absolutely. This is
not a representation of any particular paraphernalia: it is an indication of what army you are in. The design of the banner is fully IC; its display anywhere particular is, at best, only quasi-IC.