When you already have a bunch of fires burning setting more fires makes them compete for oxygen, but that doesn't help living things.

I would say the proper reaction to bullshit is critical thinking. Take someone like James Randi, and imagine instead of disproving deceptions he had just pretended to receive a message from spirits that this or that person was faking something. That's "competition" alright, but it's not helping, and it just helps normalizes something that has greater potential for abuse than use.