But BEags old chap disallowing the wearing of medals presented by foreign governments is part and parcel of the preservation of the quality of our medals. Can't have cake and eat it!
And yes it still happens - presented a NATO Medal the other day to a matelot who had driven a ship on Active Endeavour the NATO Article V operation that is on-going in the Med. It is a counter-terrorist operation but UK view is that it is not sufficiently arduous or dangerous to merit the wearing of the award - and they're right.