If there's more data, then it's more costly to deal with it - simple as that.

What if there's a little appliance that you plug in which makes predictive models (you can think of it as installing software on your laptop). What if millions of people want this appliance but it costs a $100 a month but could have made about $100 dollars a month? They will choose not to invest.

This might seem contrived, but it's also the scenario behind the web (lot less blogs when it cost $100 per month).

The net effect is that less predictive models of the economy are created. This is bad because that's how capitalism allocates resources.

The larger framework is that competition increases quality. Any barrier to business decreases competition.