Hi Rendell Peh, I agree that we need to help people to develop skills in managing their badges. One of the key things DigitalMe advocates, is that when designing badges, you consider the role-based value proposition, i.e. the value of the badge to the earner, issuer and consumer. This means that those issuing the badge can feel confident that that badge will be of value.
Another aspect that I think will become part of digital literacy, is badge management. Just as people re-write their CV as they move through their careers, refining what badges you share and with whom, will also be important.