IMHO, healthy competition breeds creativity and progress.
This is specially true since these projects are not financially motivated - your server is not going choke and die like a RL business would due to lack of customers (unless of course you shut it down yourself).
Of course some servers may look similar, and it may seem logical that it would in everyone best interest for admins to "combine the effort", but in reality it doesn't work this way. Everyone has his own "vision" on how to run things, even if they taking the most basic classic-like approach. You can't just take 5 individual admins and tell them - get together and run just 1 server. It takes certain affinity and mutual compatibility for 2 or more people to work on the same project by their own free will. Such thing will either occur naturally, or not at all.
In the main time things and creative ideas will continuously get flushed out and fine tuned. Some servers will close, unfortunate but such is life, some will grow. Ultimately the players will demonstrate what they want from a server by their attendance.
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