Many new altcoins will die in the future because there won't be many investors investing money on them and as we know it we have many scammers here who will keep creating useless tokens and coins, if you are a developer and you think you are serious enough then try as hard as possible to come out with something new and different, enough of repetitive projects and same old ideas
Bring in something NEW or don't bother at all
To a very much extent, you are right. We have thousands of project who actually didn't failed out but the team decided to just slow down or stop the development because they felt like satisfied with the money they raised during tokensale and that's why most of Startup altcoins hardly see the end of the tunnel. It is okay for competition to exist in any business venture, it is part of what drive the service provision much better but it is bad when the compstitive line is weak and new set of teams keeps coming up with shitty products