Eh, I'll go against the grain in this post and say that I think it's mostly harmless. Most people will look at it and assume that he's a LEO. As far as the "shoot me first" comment, BGs have walked right past a cop car into a place to rob it, I doubt they're the most observational bunch. I'm not sure how LEOs would react, but they'd most likely shake their heads and leave it be, since he isn't actually displaying his weapon, and it'd be hard to claim he's impersonating an officer with the badge's wording.
I know a lot of you want to keep it a secret that you carry. Though I agree with you, I don't see that as a requirement by law.
Assuming that the guy is a loon who might go off at a camera flash is a huge stretch. Depending on his age, or sense of humor, he might have just seen the badge somewhere and thought, "Heh, that looks cool! I want one!"
Cut people some slack, not everyone's as serious or enlightened as you are.
