What you see as a thriving community, others might see as a fragmented market. I don't know if this makes sense, but it feels like the multiple distributions and overlapping projects trades off deep development for broad development.
Maybe it's the inevitable result of everybody scratching their own itch and doing what they can do, or maybe it's a sign of a community that can't work together.
When you destroy the nest for these dev groups, there will be no more software for a fancy distro to package.