The Stolen Valor law isn't about cheapening military awards and decorations. If they were most VFW and DAV halls would be empty.
They are about prevent fraud. Military service, particularly valorous service, rewards individuals with tangible results. The higher the award the more the rewards. Otherwise your liars would stop at being a discharged junior sergeant or junior officer.
Look at politicians of all strips that have lied about their service from a disabled Congressman who was disabled by his own weapons to people who have never served. Why?
The did it to fraudulently convince us that they were more qualified to hold office.
The article failed to mention what benefits the defendant had applied for based on his lies. That is was the US Attorney should have focused on - tangible fraud not an abstract concept. That would have made it much tougher for the Judge to issue his rulings.
The appropriate punishment for this guy is public ridicule and shunning.