It feels to me like the author is trying hard not to offend his community and ending up a ways off the point.
There can't be 'too many' games any more than there can be 'too many' websites or whatever else.
Too many is only relevant here because the indie segment has effectively been propped up on the good will of the community, not the quality of those games - with obvious exceptions.
This is a charity pie being sliced thin, not one made of value.
High-value products will always have a place in any market.
Second rate games have been skating by with issues or omissions that would see any major label release crucified simply because they were sporting the indie armband of immunity. Expecting to turn a profit, much less get rich with anything less than "an utterly flawless, ground-breaking title and utterly blow everyone’s minds." is the problem.
Forget the indie label and there's absolutely nothing new to see here.