Dumb Question: Do we know what the badges do and if they'll be adding more?
Currently nothing, but there's been speculation that they might do something in the future. No clue on more.
Is Warlock: Master of the Arcane worth it? I enjoyed the Age of Wonders games but not so much Civ 5 (which I hear Warlock is heavily based off). It's currently a "flash sale" for $6.79.
Depends, as always, on how much you value $6.79.
It's basically limited but has its strong points. The Civ 5 thing is accurate in how it tends to look, how terrain differs, and in how units attack/defend/move/level up. It's AoW-like in that there's three resources (gold, mana, food) for casting, upkeep, buying units in the first place, etc, you research spells one by one in order to cast them, cities grow on their own inscrutable timeframe rather than something obvious like food (though lack of food does apply a penalty), and a fair amount of the game is attacking monster lairs and getting ambushed by spiders for exp and loot.
So, I dunno. Depends on what you liked or disliked about each and what you're after, though I would generally consider it "alright" on the whole rather than especially good.