We understand that we need some alternatives to bitcoin, but not in such a way that every project wants to establish a coin. if we need altcoins to assist bitcoin in its vision, I must confess to you that we really don't need more than 10 altcoins, same as we don’t even need more than 10 exchanges in the market, but you see majority of shitcoins and shit exchanges flooding the market because they are all after the money and not the help they want to render to bitcoin, so tell me why people would not give up on altcoins?
I would be concentrating on your exchange example but before than, lets take a look at the current fiat currency used around the world. Are they limited nope, all independent nation have theirs some even shared similar names like Canadian dollars and US dollars. Point I'm trying to make is, the cryptocurrency market is a free market and from my recent understanding of importance of the free market (in this past few days), it does contributes much more to the development of an industry. The more altcoins we have the more competition the industry will produce as a result benefiting the market in general.
As for your statement of the industry needing fewer exchange, I don't support that as it does no good to the development of the industry. Power will become centralized to very few exchange which will then dictate the affair of the industry (which we're already experiencing). Onces again the power of free market comes into play. We need as many exchange as possible to decentralized the distribution of power within the exchange industry.
