I don't see it as bad at all.
I see it as full utilization of blockchain technology.
Blockchain, like the internet, is open source for everyone.
It is meant to be built on.
Do you ever feel, "Ugh, there are too many websites!"
Not really.

In the end, there will be many thousands of coins but you will only pay attention and use the ones that are relevant to you.
This does not diminish the value of others.
Mainstream adoption will allow for this many to exist and have many different successful projects to exist at the same time.