It still baffles me why people do this. More than anything else I just don't understand the logic. I think I've said this on another thread here, but in my view there are two types of people in the world: (1) those who know/appreciate what an M car is and (2) those who don't. If you fall into either category, an M badge on a non-M car is not going to impress you. And surely people who put M badges on non-M cars know this. So exactly for whose benefit do they do this?
I've noticed that Audi drivers are almost worse at this lately. I saw a new one last week: an A6 with an "S4" badge stuck on, right under the TDI badge...
Say what you want about the idiots who abuse M badges, but at least I've never seen a 5 series with an "M3" badge on it!