Actually, it's an indicator that the market is thriving, but it is a good point that it will attract some folks that are looking to steal market share away based on pricing, which will virtually always fall into the " I wouldn't own half of them" comment from 71 Nova, I agree completely. The hard part is for the lay-person to decipher which ones are actually "real," and which ones are hype and should be avoided.
Another good indicator? AME's introduction of their setup. Art and folks are pretty smart, and very business savy, I'd surmize that they wouldn't invest the effort into developing a setup if they didn't have supreme confidence that it would sell like hotcakes (and IMHO, looks to be the best performance and value setup out there so far).
Of course, you can't forget the goodies associated with making the stock frames perform exceedingly better than they came from the factory either, like the really bitchin ATS setup. Here again though, look at the number of tubular control arms out there!!! Are they all the same? Not hardly, but I'd guess that there are a large number of folks that open the Super Chevy magazine and buy on pricing alone, while others are looking for a specific benefit.
What's it mean? In my opinion, the phrase "you get what you pay for" only applies to a market where there is sufficient competition. That's the reason that a Sonny Bryant billet crankshaft will set you back $2k or more, and a Scat cast crank that serves the same purpose is $300 (or whatever they go for). It's a good thing because there are customers for both. It's a bad thing, however, when folks are led to believe that a $300 cast crank is the same as a $2k billet unit.
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