XFC
I get where you are coming from regarding the size of the problem (ie. cost) and I also understand where those that have retired are coming from (ie. disappointment). So as ever, the compromise might be for the MoD to issue a certificate of entitlement to veterans and then, of they so wish, they can purchase one at their own expense?
It costs £25 for one engraved from here:
The Mess Dress
Then it has cost the MoD very little and to the veteran they can prove entitlement and not end up in the Walter Mitty Hunters' Club gallery!
Simples
LJ