There is certainly potential for it getting busy depending on how it’s being used. Some thoughts to reduce the noise factor would be to remove the color with CSS if that’s making the badges feel a bit too prominent (this would make them more in line with user titles and the moderator icon). I would also limit the number of badges displayed at once to those that are truly meaningful within the context of the community.
I get the general concept behind this, but if we are looking back at the OP, it feels like this is covered with post likes? I would think one of the biggest indicators of a “Great Question” or “Great Answer” would be how many likes it has.