The center emblem says 'Allah' and there are 22 allah'u akbar. 11 under the green and 11 above the red. I think the 22 allahu akbars represent 22 of bahman. Being able to read la ila ha ill allah, is just a interpretation.
I don't think having allah on the flag is against any islamic laws. Consider other Islamic countries which also do this. If it was against islamic laws wouldn't the islamic scholars say something by now?
Also, what do muslims warship. The word allah, or allah herself? (mind you the quaran is different, we are merely talking about the word 'allah')