If we lose 200 manufacturers is that really a BAD thing?

[TheVTCGuy]

Someone posted a thread recently about the article in WatchTime Magazine, describing how the industry was in serious trouble and some estimates are that 200 of the 600 timepiece manufacturers might be going away within the next year. I guess my question for everyone here is:

Is that a bad thing?

I'm an Engineer, and always go for the most efficient-cost effective procedure of acomplishing the job; that's just the way I think. So, for us as customers, would it really hurt us if our choices of watches were reduced by one third? I say NO. I expect some to disagree but hear me out.

IMHO, the market is awash these days with countless brands. Of course we all know the Rolex, Hublot, Brietling, Omega, but there are SO many, I get a headache reading the WatchTime Magazine trying to cover all the makes. I submit, that by reducing the number by one-third, the products will actually IMPROVE for the remaining two-thirds. The brain trust of the industry, is spread out over 600 houses. If 200 of those were to dissapear, that knowledge, those resources of experts will have to go somewhere, and I submit they will go to the remaining 400 manufacturers making them better. Also, theoretically, the sales of the remaining brands would benefit from a smaller market, since our choices are diminished, more purchases would be made of the manufacturers that are still in business after the reduction. Increased sales for those equals a stronger company and (theoretically) a better product.

I'm not an Economist, or knowledgable in marketing, or honestly know much about running a business, but I think my argument kind of makes sense.

That's just MHO, what does everyone else think?