Yes, there’s a difference between wearing a ribbing and simply bragging about having one. I see the difference but I don’t see how wearing a symbol is itself criminal. If that symbol was purchased legally, the fake war hero is a legal owner of it. If they wear it without attempting to gain something tangible, then it’s the same thing as you displaying a home-made shirt with a trademarked symbol on it. You can do that. It’s legal.
That is where we differ. It's not a symbol. It is an acknowledgement of action. It is an official award given for something specific.
A CIB is not a Pepsi logo. It's more than that.
Just like a civilian cannot go onto a secure installation without permission and not face severe criminal charges, likewise I believe that Congress has the authority to charge someone with wearing a trademarked item that is a military award.
Whether you believe that is the ethical thing to do, I believe Congress has absolute legal authority to do so without any legal twistings or relying upon the "necessary and proper" clause.
They make the regulations for the armed forces. Those regulations determine who can wear which award. Those regulations can stipulate the penalty for someone wearing those awards without permission.
As you said at the beginning, it doesn't matter if it hurts anyone's feelings, the law is the law.