Having said that, these misrepresentations are of a different order, and I can support the Stolen Valor Act for a number of reasons.
First, any military award or appointment has an extensive paper trail behind it with the names and signatures of recommending and approving authorities. To claim an award that one has not received is to (mis)represent a chain of official government documents that do not exist. It's tantamount to any forgery or alteration of official records.
Second, most fraud laws require an attempt to obtain something of monetary value. While valor in combat or general service to the nation may not be expressed in a quantifiable dollar amount, one would be hard pressed to argue they are not "of value." If you have a $5.00 bill in your wallet, that is a "recognition" that you provided another person with a good or service worth $5.00...or you stole it. That somebody wears a Silver Star should be recognition of their having provided the nation with a service worth a Silver Star...or they stole it.
Again, while it's impossible to directly equate a military award with a monetary value, "stolen valor" perpetrators are generally analogous to counterfeiters. Somebody passing a counterfeit $5.00 bill in effect, victimizes every person who has rightfully earned a $5.00 bill by slightly undercutting the recognized value of the real thing. In that same vein, if everybody at a bar, town hall, etc. shows up wearing a Navy Cross, those who have rightfully merited the award will be deprived of the honor and recognition to which they are entitled.
JMHO.