Eh. The more the merrier. The idea is relatively new. Bitcoin and Litecoin are clearly winners, but if people are willing to trade 'em, who cares? The "dilution" if it exists only really affects low level stuff.
Bitcoin is getting to the point where it's real value is major purchases and/or a reserve. Much like gold in an intangible sort of way.
Litecoin, trading at a little over double to nearly triple the USD is becoming more viable for small to medium purchases.
The new guys are basically pennies. Nobody cares about pennies until they accumulate a bunch of 'em.
Besides that, it gives us new guys something to play with while we figure out our machines and software.