After 3 T1 PvP matches and the abysmal amount of honor that related quest gave me, so I decided I would grind Kahless to T2 and see what happens. I ended up with roughly 1400 Honor, more than enough to promote and train the skills I needed for my build. But I was much shorter on credits and of course I had no PvP badges to deck out my ship. I had 470 some exploration badges, but since they were first order they were rather useless in getting my ship decked out with Mk IV gear.
I think this little experiment demonstrates the rather unnecessary complexity of the "economy". We need a system that is simple, that means you can get everything you need to advance (skill points, BO skill points, Honor, credits, and badges/medals) without having to accumulate rewards that are useless one you rank up. We need one system, no more tiers to badges, no more difference between medals and badges just make everything have a cost that is appropriate for its level.
The badges need changing. There's no real reason i can think of to have so many differing levels of them. If you're worried people might grind the t1 exploration missions just lower the reward and cost for the lower rank items. It's not hard.
Currently making a round in Kahless, playing a PvP during the 6min waittime, next Kahless round, ... works out best from money/honour/badge relation.
I just got annoyed that I have the tier1 Kahless quest on 2/3, without the ability to finish it because I leveled to Ltd.Cmdr meanwhile. Seems I have to drop it so close before the reward (and 100 level1 badges left, with which you can buy nothing!)
And that Kahless is also the way to level at tier2, but only dropping tier1 stuff.
This I could live with if the PvP system provided us with everything we need. The problem is twofold, first we don't currently get honor for PvP matches, so the only place to get it is from PvE like Kahless or the small amounts we get via the PvP missions. The devs have said they are working on this, but I don't know when it will be fixed, I would guess not before launch. Second, the PvP badges are tiered (like the exploration medals) and so they become useless upon promotion to the next rank. Put all of this together and what we have is system that is disjointed and broken.
In fact, we have a "full" system only by doing both PvP and PvE, but at this point the PvP and the PvE have become grindfests and offer nothing over the experience that Feds can have.