The wider public really isn't interested in privacy - look at all the private stuff they give to Facebook and Instagram for free.
Privacy coins like Monero haven't really taken off, and just producing more and more new privacy coins makes that particular niche very crowded (ensuring that none of the coins gain a critical mass to be viable long term).
You can't represent wilder public. The creation and development of Bitcoin is a demand for privacy. New privacy coins not only bring idea of guaranteeing the security of personal information through code, but also new technology. Anonymous coins under different technologies have unique encryption methods, which are progressive. "Crowded" as to what you say is not true. In the larger perspective, it is the industry's finiteness, bearing capacity and global acceptance that have not yet reached the state of maturity. In this environment, what is reflected is the industry process rather than the bad phenomenon of the industry. You're right to think that the market is immature and lack of capital, but you cannot deny the constructive and progressive nature of anonymous coin.