I'd never heard of Badiou before now, so stop me if I'm getting this all mixed up - but I don't see any conflict between having respect for "absolute Otherness" and declining to tolerate said otherness. I think you can have any combination of respect and tolerance.
I neither respect nor tolerate stinging insects in my immediate vicinity - I'll kill them with whatever tool is handy at the time. I neither know nor care how painful it is for them die of wasp spray, because I don't ascribe any real value to them and dammit I'm allergic. If I did respect them, I'd try to find alternatives to killing them (some way to move their nest away from my door?) or failing that a miminally painful way to kill them. But I don't, so I'm cool with whatever method.
I tolerate, but do not respect, the software "fixes" that a particular coworker keeps submitting. They're universally worthless code; if they don't actually create a bug, they warp the architecture in such a way that all future programming becomes needlessly difficult. But I tolerate it, because getting into a code turf war with him is more trouble than it's worth (especially as I'm technically on a different project.) Maybe that's not a very good example because if I didn't have to tolerate them I wouldn't - say I tolerate but don't respect rocks? (I don't hold them to be of any real value, but their presence doesn't bother me.)
I respect, but do not tolerate, murderers. They're people too; I don't pretend to understand their thought process, but then I don't understand a lot of things. (A lot of people don't understand me either, for that matter.) But I'm quite willing to support whatever is necessary to keep them from killing more people, even if that infringes on their personal liberties or is uncomfortable for them. But because I do have respect for them as people, I'm against needlessly harming or humiliating them. If they need to be kept in jail, fine, but there's no call to put hoods on their heads and make them pose naked. The difference between them and wasps is that if someone enjoyed pulling all the limbs off of a wasp one by one, I'd find that distasteful and probably not want to be friends with that person - but I'd support imprisoning someone who enjoyed pulling the limbs off of murderers one by one.
Again, I'm not really sure what end point he's trying to build up to, but throwing out respect just because the established order claims to value it seems... unfounded?
The other stuff I still have to chew on.