There's a whole study behind flags and heraldry which is many centuries old. It has its strict rules. You can't just go around and "fix the layout" according to the latest esthetic trends. Look at the flags / coats of arms designed in the 60s / 70s to see what sort of disaster this leads to.
Maybe the layout of the real one has some symbolism thats specific to Herefordshire that we don't know about. Hard to say one is better without knowing the history behind the real one.
I think this is the real flag, if anyone cares.