Diversity is good thing, in general. However, we are now having so many crypto currencies! Most of them will never be used for any real life trading (i.e. buy/sell tangible goods).
Hopefully, after the initial surge, market will regulate itself, and we'll end up with 2-3 core crypto currencies.
Sort of where we are at right now. There will always be a number of top coins, and massive amount's of penny coins with (even more) erratic value.