Well in this case "is it really that bad" means that the situation is actually good: if the police needed this car as the standard model that means the Brits are doing so fine everybody owns a super sports car.
Yeah, it's a publicity stunt. Loads of fun for the Super-Cop who gets to cruise in this thing.
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"Tout ce qui est exagéré est insignifiant." ("All that is exaggerated is insignificant.") - Talleyrand
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