Good Idea but bad grouping.
Right now Arcanium Arena is pretty much a grey area with all these afk alts that people are making and joining to earn the badges. BTW, you can get 800 badges by winning 16 games consecutive, which is entirely possible as most of the time you will be facing alts or 1-3 ppl. game time if 10-15 mins mostly, so according to your formula of 1 PoM = 100 AA badges... just 4-5hrs of running AA will let you pull a PoM gear... which are some of the best gears people can use. therefore this grouping will not work out in anyone's favor except those people's who are putting in so many alts to earn the badges.
And before you say about how people can still get good stats from AA badges currently, let me remind you that stats from PoM gear are pretty much all good stats except from cloth gear, from which people usually only want int/ma. however the % of getting a good stat from AA badges are pretty low.
Would love to get the afk alts removed, but than the queue time for AA would be really long