Ever heard of nominalization? It's taking a verb, adjective, or adverb and turning it into a noun (or the other way around). You use those kinds of words every day. For instance, do you water your plants or do you pour water onto your plants? Water, in this instance, is used as both a noun and a verb. One you're probably familiar with is "Blues", as in "One of the Blues said...". Blue is an adjective, while it is also a name given to Blizzard posters (also a nominalization of "post" by morphological process of adding "-er") referencing the color of their posts.
Using the term "bads" is not incorrect, nor is it "the pinnacle of idiocy".