This strikes me as the sort of law that would be mainly supported by the kind of people who usually go around complaining about big government and the fact that we have too many laws restricting our freedom.
When you say non veterans wearing medals that could entail may things. Sons or daughters of veterans wearing medals is fine by me. It can be a tribute to a parent.
If you mean assholes pretending to be veterans to get laid or something similar, then I think they should be mocked and shamed. Daily. Every waking hour.
Shoulld it be a crime? Not in my opinion. There are far worse things, far worse.
That’s not an argument, though, as we could apply it to pretty much any crime short of rape or murder.