Can there be too many games?
In a sense, yes, I believe there can be.
Don't get me wrong - I do think there's strength to be found in diversity. I myself am most certainly *not* a "one game for all time" sort.
However, there's also such a thing as spreading things too thin. Imagine your own personal gaming life, if you played a game each week, but it was a different game. How much depth would you get? Would you ever really feel you'd gotten the most you could from a game? Probably not. The same sort of thing can happen in the market overall.
With too many games, spread too thin, few or none of them gets the full focus and attention (and business and $$) that allows them to be really and truly developed and supported.