Something about AltCoins that lot of Investors don't know is that you can Invest with a low capital and if you're a good market analyzer to understand that the market holds to offer and going for the right projects, you could always Invest lower capital in that AltCoin and earns bigger of profits at all costs.
But investors who doesn't know about this AltCoin analysis would always have that wrong impressions towards AltCoins. Although AltCoins differs which could grantee you profits and reliability.
The long and short of all that you said is that Altcoin investment is super risky, and not everyone is ready to give themselves up to the kind of risk altcoins possess, although the risk level of altcoins differs from one to another, but I personally believe that those who avoid investing in Altcoins just don't wanna take any risk with them.
Personally, I believe in Altcoins exactly same way I believe in bitcoin, and I love investing in Altcoins because with their higher level of risk, so also do they offer or provide much more profit potentials for its Investors, but again on the other hand, we can't really judge those who refuse to invest in Alts, or believe they lack the knowledge of market analysis, I feel this has more to do with choice.