I think "incorrectly" is a strong assertion to make, when it's behaviour that most users are actually accustomed to and expect.
I guess you could think of it somewhat like the difference between clipping an image larger than the monitor's resolution or scaling it to fit. In the former case you preserve the accuracy of individual pixels within the area that fits, but discard the information outside; and in the latter, you lose accuracy of individual pixels but preserve being able to see (an approximation of) the whole image. Applying this to colour spaces, "clipping" DP3 to sRGB preserves the "absolute" colour information but discards the "relative" differences (hence not being able to see the logo), while scaling discards the absolute colour (I think this is what you mean by "reds as being more muted") but preserves the differences (being able to see the logo).
Since a user looking at a monitor derives most of his/her information from the contrast between pixel's colours, I'd say discarding that contrast is the real "incorrect" choice most of the time. DP3 images scaled onto an sRGB monitor certainly won't look as good as on a DP3 one, but at least the user will still be able to resolve the fine detail that relies on differences in pixel values. Besides, getting absolute color accuracy on a monitor has always been nearly impossible in a non-specialised context since it depends so much on things like external lighting.