To some degree this has roots ever further back than badge gear. The jump from Vanilla to BC was possibly the biggest jump in relative power (and the first of its kind) that the game had ever seen, making pretty much anything that you worked towards in vanilla (shy of the last couple of raids that so few people did) all but useless within an hour of questing game play.
It was at that point that I mostly removed myself from the gear treadmill for the most part and decided that things like mounts and such were the way to go, because they would never be devalued (which was a sound decision of course, until the hammer fell on flying). At which point I all but left the game... but that is another story. Short version: I have only been subbed one month in nearly three years.