This gets SOOO much worse in Wrath though. Because they changed the tokens each tier. You can’t do Naxx to get Ulduar badge gear. You can’t do Ulduar to get TOC badge gear. So each Tier you completely replaced your previous gear (save trinkets maybe).
At least in TBC you had Badges of Justice, so once Kara drops BoJ people will run Kara/Gruuls/Mags/SSC/TK or even Heroics for the P5 Badge gear.