I would love your false flag interpretation, except we did see the bugs shooting down the human spaceships, in a scene I don't think was intended to be a false narration or anything. They do appear to have some space capabilities and I think the lack of clarity is better chalked up to Hollywood science than directorial intent. Your mileage may vary, of course.

In support of the whole thing being a false flag, it would explain the sheer incompetence with which the war is prosecuted... a modern infantry unit would likely fate much better than Our Heroes did. Seeing it as a deliberately harrowing experience for social purposes where the technologically-superior humans are actually in full control the whole time would be an interesting twist. But, again, this would be a lot more solid if Hollywood didn't have a track record of unironic bad tactics across the board.