Same problem is happening everywhere in media: Clutter and Fragmentation.
Basically too much being touted across too many channels to not enough people. There are the same problems in TV, Press & the internet. Its just an indication of a mature market, and a natural consequence of the switch to digital.
What this means is that you are usually left with a handful of big brands, and thousands of niche brands. In Techno its the same - a handful of credible labels and countless smaller ones.
I've always really enjoyed digging - I think thats part of what djing is about - sifting through reams of shite to find the little nuggest of gold that others may have overlooked. I'm also really glad that loads of people are producing and get their stuff out. It prevents elitism, and ultimately paves the way to innovation. New artists are responsible for breaking new ground. Sure, they may start by copying their idols - but who hasn't? Its how you learn. No one starts a career at the top of their game. Few people are distinctive from the outset, it usually takes time for people to establish their sound.
At the moment there are plenty of people sticking to the tried and tested. Computer technology has made production a possiblity for almost everyone, rather than a chosen few, and their are a lot of new artists who need to mature. But I think thats what makes the djs contribution so much more valuable - they can present their own sound rather than run through a techno top 10.
In drum & bass you used to have nights when every headliner would turn up with the same records as everyone else. Everyone had the same "big tunes". Quality tunes, but to be honest it got really boring listening to them.
I'm optimistic about the future.