People work hard for certain things. Very hard. Allowing random wannabees to swan around wearing insignia they haven't earned is a far bigger detriment to morale and discipline than your perceived "willy waving".
When I attended an AAC seminar in BAOR back in the sixties the then Commander, 1 Br Corps addressed the seminar and was presented with 'honorary' pilots wings which he wore for the remainder of his military life.
Many of us felt this was altogether wrong as he never attended a pilots course, I still wonder if it was 'correct' and allowed?