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?
It's good imo, it's not bad to have variety of altcoins. Trash altcoins will be dead by itself because people will not buy it, but good altcoins will keep survived. As a trader, large variety of altcoins is nice, so i can trading with many altcoins and can see many potential on every altcoins.
Opportunist sides of a traders will agree with that, but for real crypto supporters the market is affected by this alts which keep showing around, the more its offer the more traders will split their money, alts without future will die and those who bought it will lose their money making them frustrated and leave this market, we do have our own options make a good use of it.