we sure do need more, not least cuz fees to use them right now are sometimes pretty steep, so competition definitely required! I would think twice as customer if i saw commission for using ATM was 7% for example!
I don't think we need ATMs in order to increase bitcoin adoption. I think we need more merchants to accept bitcoin and to offer discounts for paying in bitcoin in order to increase adoption.
It is already very easy for people to buy bitcoin as it is.