How many people read other peoples profiles how often?
I think that the answer to this question is exactly why the icons should be shown on the left side of posts.
All badges at this place would be possible, wouldn't it? if they are 16x16 and one person has 6 of them (what might be the exception already), its gonna be 96 pixels in width - less than the width of most peoples avatars. of course - for people like Leviathan, who have like 20 badges - there can still be a link "view all" that would link to the profile, where all badges should be shown.
An option in everybodys settings whether or not to show them is definitely a good idea.