The problem is they did have a chance and failed. It is fair that when multiple alliances work together then all get a badge. Sometimes 2nd place and 3rd place alliances protected the 1st place alliance to enable them to dig to the centre, so they deserve the badges.
The only suggestions I could make that would be to limit the badges for everyone such that after 6th place you don't get a badge. This may stop some worlds becoming controlled by a few players and would probably kill off the world quicker. ~The other idea is if you don't win a badge quickly, move to another world, or another game, as you were beaten in the game.