A lot of good discussion here. In my troop I am the "merit badge guy." The SM has delegated to me the responsibility of keeping track of all the merit badge counselors for our district and helping the boys find a counselor to work with them on their badges. Right now I am looking over the requirements for all the badges our scouts have signed up for at Summer Camp and making sure they are aware of any pre-requisites they should have completed before getting to camp.
Keep in mind that logistical/financial factors come into play with several of the badges. Camps and merit badge colleges bring in economy of scale. I don't know about you guys, but I can't buy my son a horse and saddle so he can earn Horsemanship. Buying a $70,000 ski boat to earn the Water Sports merit badge is out of the question. I feel that camp is the place to leverage resources to earn badges that would otherwise be very hard to do. In that spirit I just paid $43 in basket weaving materials for my son to do the Basketry merit badge on his own so he can save his camp slots for badges that we absolutely couldn't do on our own. He would like to do leatherwork, so I am looking for a counselor who has the tools needed so I don't have to buy those too.
Trying to earn every merit badge on your own without the resources of a camp or merit badge college just isn't financially feasible for most people, and I think it is against the spirit of scouting for only "rich kids" to earn the most fun badges.
In our troop, we normally don't have our own merit badge workshops, but we are making an exception for the four historical merit badges that are only available this year. There aren't any counselors for these badges, so I am registering to counsel all four and I'm bringing in experts in the four fields to teach the skills. All the boys will have to show they can do the skills (can you say semaphore signaling?), so I don't feel like this is a problem at all.