Yes, and no. In the UK, I'm glad that Aldi and Lidl are challenging the larger supermarkets, but I would hate to see a situation where a race to the bottom on price means consumers have less choice across the entire supermarket sector. By choice I don't mean 20 brands of ketchup, I mean - to give just one example - a wide variety of herbs and spices for instance. (In my local Aldi and Lidl, they rarely have more than ten.)
Plus, UK supermarkets are a bit more flexible in catering to local shoppers. You'll often find South Asian/African/Chinese/Carribean/Polish goods stocked in the supermarket to reflect the local population.
Also, the discount supermarkets don't always treat suppliers any better than their larger counterparts. Last year, milk farmers in the UK protested against supermarkets that were paying them less than the cost of producing milk. Lidl and Aldi were among the supermarkets implicated. (To their credit, both Lidl and Aldi and other supermarkets agreed to raise the price they paid for milk as a result of the farmer's protest). Irish farmers also protested against Lidl and Aldi's low milk prices last year too.
In Germany, where Aldi and Lidl dominate the supermarket sector, there is far less product choice in the supermarket sector because of course the key to their low prices and profitability is fewer stock lines. I hope the supermarket landscape in the UK doesn't turn into something similar.