How much art is too much?

Does the U.S. have more outlets for the arts than it can handle?  Rocco Landesman, head of the National Endowment for the Arts, ignited this debate recently.  During a conference when asked about the importance of declining attendance figures for the arts in the country he said "There are too many theaters.......You can either increase demand or decrease supply.  Demand is not going to increase.  So its time to think about decreasing supply."

Do you agree?  Is it better for the arts if some arts groups/institutions shut down?