While you're right, I think there is no right answer here and actually the decisions are probably the best they could have made.
Taiwan flag up for 12 years, fair enough.
China complains? Well, don't want to make an enemy of China and it's a tiny change, why oppose it? Just do as China asked and be done with it.
Taiwan complains? Oops, don't want to make an enemy of Taiwan either, so their flag is definitely going back up. But we can't take down China's flag for the aforementioned reasons. But now the Taiwanese flag is up because Taiwan asked for it, not because the council insisted on keeping it.
After this "stay neutral" comment, any further complaint from either Taiwan or China won't achieve anything. They are literally treating both parties equally, i.e. neutrally.
We're all playing checkers and this council is winning at 4D chess without even realizing it.