It's funny that this was written in 1989, right after the Japanese pulled the industry out of the 80s Atari crash, where shovelware destroyed consumer confidence in Atari products (I know that is a simplification, but the Nintendo Seal of Approval carried weight).

The fact is the 90s was riddled with derivatives, where every cartoon character had a derivative side-scroller of varying quality. The scale of a cartridge game grew enough that just changing animation quality, physics, attack methods, and level design was enough to make the Aladin side-scroller a different enough experience from the Lion King side-scroller that a customer would be satisfied by both purchases.

I'd say we have lived in the world MTJ predicted since this was written, but innovation and quality were hardly ever buried by rip-o-bot churn. Even today, I'd consider the "slop" genres ($5 co-op games, stream-worthy horror projects) to be healthy ecosystems where the cream typically rises to the top.