Currently, VMF-251 adjusts some of the award criteria to levels more appropriate for Aces High.
As such, we do not currently include the Medal of Honor at all among our decorations. The requirements are so far beyond what's possible in this game there is no way to adequately represent it.
We have awarded one Navy Cross, for actions by one of our pilots (in this case, while steering a carrier during its defense) that were of a mission-decisive nature (basically, his handling of the task group saved the boat). Risk of life and limb is just not a practical criteria, as in the historical Navy Cross, so we've adjusted this to distinguish individual actions that were singularly critical to the success of the squadron's assignment. In the case noted above, much of the CAP was down either to enemy fire, or damage preventing re-arm, so the squad member essentially saved the boat--and our mission objectives.
Another incident involved two pilots in D3As valiantly holding off a pair of enemy fighters, despite knowing they would likely be shot down, to allow a third, damaged squad-mate to return to the carrier. While historically this might have resulted in a Bronze or even Silver Star, instead we chose to award the DFC as this would be more appropriate for the game.
I agree, it can be tricky issuing decorations, especially the higher ones. I've made every attempt to ensure that decorations issued by the squadron are appropriate to the circumstances, and after the squadron voted have occasionally up or down-graded an award on my authority as C/O.