Whether people assume an LV to be fake or not will depend a lot on context- as it will with any widely replicated item. If you are hanging out in Bal Harbour or Gstaad, people will probably assume it that it is real (although most of the real ones you see in such places are special editions, which helps distinguish them from the common production line and marks them off as real). If you are staying at a Super 8, then that's a fake, buddy.

My problem with the LV line is that even the real items are massively overproduced and hyperbranded. This is why I like the Utah line (at least for luggage), as it is a little more masculine anyway overall, and has LV quality without screaming LV to everyone- just those who know a little bit about the brand already.