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I could see this becoming a mess trying to figure out what you can trade or sell once you've started unlocking cards from multiple games if the ones you need also show up in your inventory.
To craft a badge you need to have 1 of each card for that game. For example, there are 9 cards in the Team Fortress 2 collection, so you have to have 9 different TF2 cards.
If you do, you can craft the badge, if you don't, you can't. If you trade one of your cards away, you no longer have it.
Can't get easier than that...
If I want to trade/sell duplicates or ones that I don't need from already completed badges I'll have to sort through lots of badges in my inventory which to me is messy. I agree not a big deal if you own a couple games but for those of us who own lots of games a use or lock feature would be nice.
If you don't use them to craft badges (or give/trade them away or sell them at the community market... obviously) they will stay in your inventory.
So even though you technically don't have the cards anymore, having a badge still lets you keep a little part of the cards themselves.