Sorry for being blunt, but if it takes recognition to encourage others to follow suite then it begs the question 'would they have done it otherwise?' In which case we are back to 'do nothing without benefit to yourself'.
Behavior modification is effected with a series of small steps, (that often come with some form of reward), such that, when those steps have been completed, the resultant behavior is the norm. You can't change things by doing nothing and you can't expect the behavior modification process to be successful without the appropriate behavior being modeled. The people of Wootten Bassett are modeling the "appropriate behavior" and to recognize their "effort" represents the "reward".
Furthermore, the issue may force the government to look more closely at the way it deals with and thinks about the military, serving, ex and those who have given all.
Unless you want the Chavs to continue to multiply by a similar but opposite process.