I also like the look of the badge on some colors of 914 and am strongly leaning toward doing it for two reasons.
1) The Porsche design team officially voted to badge the car but the VW-Porsche marketing cluster prevented it from happening.
2) It really irritates a lot of people
However, if I did it, I'd cut the posts off and mount with 3M trim tape. No way would I drill the hood.
A few weeks ago I took a drive in the car with a friend and let him drive it to a small town where we had lunch. As we ate outside next to the car, I asked what he thought about badging the car. His first question was whether it came from the factory with a badge. No, but then I told the story of the design team voting to badge but the car already being marketed as VW-Porsche in Europe so the badge never happened. A couple weeks later he says, "I've been thinking about the badge. I think you should do it." I tend to agree. I credit everything that is great about these cars to the design team and everything that is bad to the botched marketing. I like the idea of honoring the wishes of the design team even though I doubt many of them lost sleep over never seeing the badge on the car.
If you decide to add the badge, I would mount it in the same location as in the 914-8 (Mark Henry's photo on page 1). That would most likely be the location where the design team would have placed it.
I agree with not drilling holes. Makes change of mind much easier too.
Or do what I did... add another 914 to the stable... My 74 does not have the badge, my 73 does.