The idea of perfectly market is definitely Darwinian as you state. I think that more and more choices originate from the freedom that comes from a truly free market. The products ultimately would have to compete for their space in the market and in the end the market would sort the problem of overcrowding by itself - call it Darwinian trimming if you will.
It actually gives me a measure of confidence in the crypto market to see so many choices because it reinforces a the idea of a healthy participation by people in the trade. I mean participation as producers and not just as consumers.