The Way Blizzard is handling Badges of Heroism/Valor/Conquest/Whatevercomesnext is, in my opinion, the correct way.
The lowest tier of gear, heroism, is found in 10 man tier 7 content, as are the heroism badges.
Tier 7.5 and Tier 8 operate on badges of Valor, and are all the same iLevel.
Tier 8.5 will use Conquest, and be slightly better than tier 7.5 and 8.
So now, if you do Ulduar and the new vault raid in a 10 man group, you get valor badges, which is a step up in gear quality.
If you've been doing both levels of progression, 10 man and 25 man, you no longer have any desire for heroism-quality loot anyway, so what's your complaint?
They will add new valor rewards, and new conquest rewards.
Next patch they will add new conquest, and new next-tier stuff.
And so on and so forth.