Exactly. The idea of "kitchen sink" D&D seems good on paper, but what you're really doing is making people that don't play kitchen sink D&D feel like they're no longer playing "D&D" and shifting them away from your brand.
It didn't make feel like I was no longer playing D&D. It just made me feel this was not the D&D or settings that I wanted to play.
This is why Savage Worlds is so popular - it's almost infinitely modable. And it encourages such modding and "do it yourselfism". A D&D brand that effectively allowed for personalized campaign settings would be AMAZING.
Savage Worlds is, currently, my favorite rpg for non-supers. Give me the $10 Explorer edition rule book along with
1. Modern Martial Arts, the free Modern Martial Arts supplement (by Brand Manager, Clint Black) which adds some new edges;
2. The free dials for adjusting incapacitation from cartoony to Gritty (also by Clint and free on the forums), and
3. The push/trip maneuver by Clint (also free on the forums)
From there, it just depends on what I am in the mood for:
4. For fantasy, I can just use the free Wizards and Warriors supplement) or, if I want race creation, new edges, new equipment, some new powers and advice, get the Fantasy Companion for $20. If I don't want to build my own setting, I can just buy Hellfrost (Triple Ace Games), Sundered Skies (Triple Ace Games), Legends of Steel , or Sherwood-the Legend of Robin Hood (Battlefield Press).
And, if I want, to tailor the magic system, the free Shark Bytes has various examples or I can go to the official website and get free help (possibly from the brand manager himself).
5. Thrilling Tales 2e (Adamant) if I want to run Pulp
6. Mars: Savage Worlds edition (Adamant) for Planetary Romance
7. Pirates of the Spanish Main for Pirates
8. The upcoming Darwin's World (RPGObjects) for post Apocalypse
Actually, the only complaints that I really have about Savage Worlds are 1)one or two skills being to broad for my taste; 2) there are no official write-ups for beholders, mindflayers or the demons and devils that originated in 1e; and 3) no official Savage worlds versions of Greyhawk, Forgotten Realms, Darksun, or Ravenloft.