Does It Make Me A "Bad Collector"

From the interests/preferences you've listed you'd make a bad investor, a bad coin dealer, a bad classic coin collector, and a bad error/variety collector ... and an EXCELLENT (modern) coin collector!

In my opinion you're going about it exactly the right way and for the right reasons!

Yes you are very, very bad! (just kidding)

"You very bad man! Very bad!" Babu Bot

My way of thinking is your kind of contraversal. I mean you sound like your a coin collector and collect for the purpose of your own enjoyment. Then you mention how you are considering establishing a family type heirloom situation.
If you are collecting for yourself, keep it up. If you are really thinking about a future family heirloom of sentimental purposes, let me say you should sit down with some of your relatives and find out if any would really want those coins. You may be shocked that no one wants them or maybe all would want them. Occationally many ACT as if they want them and will dump them all the day your gone.
As an example I've been collecting coins and many other things for well over 60 years. One Son and he wants nothing to do with coins or anything else I collect. Everyone else is long gone too. So when my time comes my so called family tradional coin colleting will probably end up in a coin counting machine.
An old friend of mine had a massive gun, ammunition, etc collection. Many guns were worth a lot of money. He passed away. His family called in a gun store and was offered $1,000 for everything and they took it. Even one Mauser Broom Handle was worth more than that. He too ASSUMED all would be passed on.
I don't want to sound to pessimistic but I suggest you really find out if anyone wants your collection when you time comes or just collect coin for yourself.

Don't worry later on you will get tired of modern coins and you will start venturing into classic coins.

Collect what YOU want and what makes you happy. That's the joy that is coin collecting

I think the what you say you do is the true definition of collector, the other things you mention are considered to be an investor hiding behind a collector cloak or an investor with collector benefits. My grandfather did this his whole life and would have never parted with any coin he had (unless it was handing it down to someone in the family) and when he died I bet I received well over a million coins he had collected from his childhood from pocket change or gotten from other people that acquired it some kind of way. He had some nice collector coins in there including a couple 1955/55 Lincoln cents he had gotten out of cigarette packs (according to him)