Because frankly, every time I see someone using it in the crucible they're at the bottom of the scoreboard.
Edit: Do it like the rest of us, let your gameplay do the bragging.
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Let me start out by saying, I suck at PVP and I don't go in unless a bounty requires it or IB has something I want. That being said, this is why I don't do ToO, because I know I'm not good enough to go flawless without being carried and this shows that earning the emblem, and wearing it in game, leaves a lot of doubt and presents a false claim. The only reason you would know someone did it on their own skill is to take the time and look at their stats or come here and see them post they did it for real (some with a grain of salt mind you). I think a great way for the PVP'rs to have something of their own (not weapons or such just an emblem) is to have a mode of ToO, that only if your PVP stat's are above a certain number you can enter, no matter if you are part of a team. Kind of like trying to do PoE before you complete the bounty you get the "some players can't enter this mode" type message. This way you don't get as much backlash of people saying "I paid for content" etc. since it's just an emblem and nothing else. Like I said, I don't play PVP often or at all so I'm not going to have the emblem either (check my stats), but I think this would separate the wheat from the chaff so to speak for the PVP side. Kind of a "Bragging rights only" emblem, but no one is being left out from getting weapons or armor. Just a thought.