While I wouldn't actually go the trouble of displaying a model in a 3D diorama, I do like the idea of a display that adds to the history / image / environment. My thoughts on one model that I have yet to build, the 1/16 Mercedes SS...
While the kit is supposedly based on a 1927/28 SS, it more closely resembles a 1933 version owned by German theatrical impresario Willy Forst. This shot was taken at Lake Zurich.
I was thinking of making a base that included a roadside wall, with this shot of Lake Zurich made into a poster as a background (it's a VERY big file).
This is the way the kit looks when built, as incredibly modeled by the late Martin Swire.