Choice is not always a good thing because there is cost to providing that choice. Steve Jobs was acutely aware of this and upon his return to Apple, he immediately simplified the product line and jettisoned many items. There are always niche products that make sense for some user, somewhere. However there are development, production, distribution and support costs for all those, plus it complicates a product line.
A good example of "make something for everybody, no matter what it does to our product line" is Dell. Their web site is so cluttered and complex it's hard to figure out exactly how many lines they have, who they are for, and which one to order.
It is also easier to maintain quality with a more restricted product line. Along with hundreds of other models, Dell makes a virtual iMac clone, the XPS 27. It has roughly the same performance and price but looks like it was designed in the former Soviet Union. It's much thicker and heavier and acoustically a lot louder. IOW if Herman Munster was a real person it would be his all-in-one computer. That is partially due to a highly fragmented product line.
Another example is when Apple was developing Final Cut, supposedly marketing people presented Jobs plans for various versions, Microsoft-like. IOW Final Cut Jr, Final Cut Home, Final Cut Small Business, Final Cut Super Pro, etc. A marketing person wants as much customer choice as possible, because each one represents possible additional sales.
Supposedly Jobs took the presentation materials, threw them in a single box and said "that's how many versions we're going to have -- one!"