Putting aside the penis measuring remarks for a moment, I think there are some interesting points being made here...
On one hand, I think SeaKingTacco is right, the argument can certainly be made that badges for training or deeds accomplished do serve to give credit where credit is due (otherwise medals wouldn't exist, let alone aircrew wings). I'm guessing these might also help to foster a sense of morale and pride amongst those who share the insignia, not to metion the operational requirement for team members and their respective responsibilities to be easily identifiable in the often less-than-ideal conditions armed forces are expected to operate and thrive in. I think the necessity of division by rank should be fairly obvious to most on these boards.
On the other hand, Aerospaced_Out does make a valid point. When anything serves to divide a team of individuals expected to act in synchronicity, often in very serious or stressful, even life or death situations, I don't think that can ever be a positive thing. It's fairly obvious from the amount of discussion this topic has generated, that there is some division on the matter. It is also interesting to note that nearly all individuals who seem to have taken issue with the original idea, or who have at least cared enough to weigh-in on the conversation, are those already in possession of said wings; an AESOp, a Pilot, and a Nav (and someone wearing jump wings, judging from the avatar), which, like it or not, does possibly speak to that perceived sense of elitism. You might even say based on that premise, protectionism (which I would argue is even more harmful to an organization that is so heavily team-oriented). I'm not trying to say 'strip all the pilots of their wings!!', I'm just suggesting maybe this discussion has less to do with a sense of inadequacy than some 'winged' members might like to believe (no negative connotation intended there).
One question that hasn't been asked yet is: how do other countries do it? I fully understand that the CF has it's own customs and traditions to uphold, but given the nature of the Airborne Warning/AEC occupation, I think it's a question that has some validity. Airborne Warning crews operate almost exclusively with NATO and allied air forces, outside of Canada. They are some of the most visible ambassadors to Canada the CAF has. What do the USAF/RAF/RAAF/Other Air Battle Managers also working on E-3's wear?