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Right, Because there is a reason to flex with the number of games owned.
Also, if you want to think about it: Steam gets money for purchases (well, if it's from the Steam store). They don't really care whether you play those games.
Then you don't understand the purpose of badges.
Valve learned their lesson after the Next Fest that had a badge for Demos played during the Next Fest. People automated adding all the demos to their account and used idlers to boost their badge.