I do not think it is good if too many coins keep coming in a short span of time. Many times people cannot uphold a coin for a long time and it ends up into oblivion. There are some scammers too who pop up at times.
I agree, there are really a lot of coins coming into the market that turns out to be shitcoins and just for pump and dump and then eventually lost in oblivion and ended up being de-listed by most trading platform.
These can be avoided if the introduction of a coin is regularized. However, this is not easy and it comes as a collective responsibility of our crypto community.
When there are way too many coins fighting to occupy space and success it may not be conducive to the digital market. The demand for only one existing coin may be so much that the others will have to be withdrawn from the race because there is equal distrust with all new coins.
And some of them turns into scam coins as well. That's why those who are legit are somewhat affected when a coins turn out to be a scam. And its really hard to filtered out which ICO will turn out to be a scam until its too late for all of us.
When a structure comes into existence and when there is a serious regulation in place then I feel doors will be automatically opened for new coins. There should be a balance and investment should be made after thorough analysis of the ICOs.
That's why China bans ICO in the first place. It really turns out to be circus out there because many ICO's are popping out with new unique technology to offer. Just a copy-cat of those who have existed before, however, people still invest on them and lost their funds. And China step in and decided that its time to ban and stop them for screwing and milking other people's money.