The problem we have is that we think art is some specific kind of object, so it seems the question is asking whether we can have too many ‘art objects’. I’d rather think of it as questioning our ability to find the art in the world, in its hidden places and everyday occurrences. If you focus on the objects you lose sight of the nature of beauty in the world (and art) as something that humans need to find.
More art in the world does not necessarily mean manufacturing more art objects but UNDERSTANDING the world as containing art more than we previously were able to. Its a matter of seeing art, our own ability, and not proliferating material things. To know something as art means to SEE it as art. If people truly understood the artfulness contained within their lives, the potential for beauty, how could we ever turn away from that?