Just a question,
What is this report badges for? Does it affect the ranking system? If yes, Iam sure that lots of user will do reporting excessively even if the reported replies is useful for everyone.
What are the consequences if you do not maintain the report counts?
It's a way of showing appreciation for reporting. Not only that, but certain individuals are motivated by status gain, and badges are a way of motivating these individuals to report more. Its exactly the reason why online courses use badges as a reward. It might sound a little silly if you don't care too much about status, and others perception of you. But, some people do.