That's what I'd like to do, and given the fact that nobody has even tried to convince me that the rules say otherwise, and my CC will go with my recommendation, that is what is going to happen. As for your comment about it being a Bronze Palm and not the Medal of Honor: It is a Bronze Palm, but it is not my Bronze Palm, it is the BSA's, and they get to decide who receives it.
My point was not that the award is meaningless, or that one just go to the Scout shop buy one and hand it out but that all the discussion and hand wringing seems a little silly to me. Interpret the guidance from National, discuss among Troop leadership, and press on. If the boy, in your Troop's opinion met the criteria as they understand it in good faith then that ought to be enough. I have seen actual combat decorations awarded (deservedly) with less scrutiny than some Boy Scout awards receive and I guess I find it funny.