First, there's hardly a stupid question :o)
sgarbiv: How high the flag?
It differs ;->
Some replays show "flag" hits well above it's extension - mapping glitches I'd say.
Your shot seems to hit the black top of the flag - as realistic as it can be.
Al's replay, OTOH, has the "in the hole" sound but carooms off nevertheless, very unlucky.
Coincidentally, I saw a video on youtube recently showing a cup being destroyed by a golf ball slam dunk - the ball stayed in!