You could make the argument that if all of the capital in crypto only had to be spread across 50 coins that that would make each of those coins extremely more valuable. In light of that thought, is the huge variety of Altcoins ultimately a good or bad thing for crypto?
From the one hand it's good. More projects, more people involved and informed about the crypto market, more potential investors.
From the other hand - bad. More scams, more weak crappy projects, less investors trust crypto projects...