In the 20+ years I have been with MrsLH, her blue badge has never once been challenged.
Traffic/Parking wardens (presumably) have the power to ask to see the reverse of the badge, which carries a photograph of the holder.
The rules are crystal clear. The badge can only be used when the person it relates to is actually being driven in the car. So no using it to "pop to the shops for MrsLH" or somesuch bullshit.
It's shenanigans with BBs which have caused some locations with very limited parking to increase the threshold to require not only a Blue Badge, but a car which is taxed as a true disabled vehicle (£0) - a much higher standard (and also incredibly restrictive if a BB holder doesn't have such a car, but is getting a lift from a non-disabled driver).
As with the arseholes who feel it's their "right" to ignore the law and use their phone when driving, I would happily see a penalty of the confiscation of the car for either offence. Sale by auction, and proceeds to shopmobilities across the UK. (You'd never guess I'm fairly liberal in most things 
).
SO with regards to holograms - as long as the badge passes muster at a distance, I imagine no one is at risk.
It has to be said the ludicrous "cars:evil, public transport:good" mentality that has engulfed local councils is partly to blame. There's fuck-all parking to start with (because we're all supposed to take the bus, or cycle). So of course BB spaces will be abused.
It's also obvious that planners have no ideas what they are up to when it comes to dealing with specialist needs (I wonder why ?). People with disabilities may have differing needs for parking. In MrsLHs case, it would be the same needs as P&C. More space around the car, allowing for doors to be opened fully, and wheel(push) chair to be removed from boot and placed alongside the car. Once that is achieved, the actual distance to the store is moot, so that provision could actually be at the back of the car park.
The other main reason would be proximity to entrance/exit (OPs need). That does require parking close to store. But only for a subset of all BB holders.
Or that's my view.
It will interesting to see what autonomous cars bring to the party. They would have to have software which requires them to respect parking regulations, so would only use BB spaces if authorised.
Applying LurkingHusbands law of "if it really mattered", there are several low/zero cost solutions to most BB abuse (see upthread about clever car park design). One idea I had would be to have a drive-over ramp into the space which prevents exit unless dropped. To drop it you show your BB to the warden/attendant/in store.
Also, given some supermarket car parks are ANPR regulated now (our local Sainsburys) it should be trivial to log and act on reg numbers caught abusing the system - especially if there's an exit barrier.