In my personal, and very limited, experience, I've never seen an officer wear a different kilt pin than the ranks. I can't imagine that the chain would be detrimental to a kilt. The only thing I think might be dangerous is that the pin itself looks a bit thick at one end, making a potentially rather big hole in one's kilt.

Hmmm,... I wonder if this might be used as some sort of fly plaid pin? Probably not.

I don't think there's anything wrong with wearing anything of a military origin unless one was seriously trying to walt himself up as something he isn't/wasn't.

Probably NSFW link to the definition of walt. Provided for our non-Commonwealth friends.