The stripes look better in the same way a "Type-R" badge looks better on a non-Type-R integra. Seriously, I know it looks better because it's more colourful, but it honestly makes you seem like a poser. Everytime I see an ///M badge on a BMW I stop beside the owner of the car and chuckle, that's just me I guess. To you, it might make sense seeing as how you've got the M3 body package. However, to the people around you, you would look like a poser. I have almost all the parts from an actual Euro E36 M3 except for the engine (shocks, springs, sways, bushings, flywheel, gear lever, body, x-brace, headlights, etc etc), I'd still feel like a poser in the end. Infact, I don't even like the fact that my M3 side door moldings says "///M". I'm looking to replace them with the BMW MotorSport International badge.
In the end I guess it all boils down to what you like. But my personal opinion is to take the stripes out. I know someone who blacked out the stripes. But that also kind of makes the colour plain. The original badge had no colour either, no need to make everything flashy, just plain and unsuttle.
Oh yeah, BITER!!!!!!! LOL, j/k