There are distinct kinds of 'badge swaps.'
1) Someone wants you to think the car is something that it's not.
This is sometimes excusable with muscle cars. As long as the owner is honest and has no issue coming clean when asked. E.g. someone turns a Lemans into a GTO Judge, or a Skylark into a GSX. Often these cars are modified to perform as well as or better than what they're imitating, anyhow; and it's more about the overall 'look' (not a big Judge fan, but GSX spoiler/hood/stripes is sex).
Just, say, putting big block engine badges on a small block car makes you a tool, though. Same as slapping M3 on your BMW, GT-R on your Nissan, Z06/ZR1 on your 'vette, ect.
2) Someone just wants to be different. VW guys like to do this...put Rabbit badges on your Golf. Or Euro 'Bora' badges on your Jetta. Or...well, there are some others with name variations, but I can't remember them. I find this acceptable if not a little silly.
3) Someone is a complete retarded assclown. 'CHECK OUT MY AE86 TOYOTA SHO COROLLA TYPE R GT-R YO.'