I guess if I had to summarize my point, you get more of what you reward. If you reward people for identifying themselves as super-niche genres with acclamation, you're going to get an absurdly-finely-sliced set of genres. It doesn't mean those hyper-fine genres are necessarily all that useful.

If anything, I kinda think it hurts artists to be slicing this finely. You can't really just be ambiently "creative" without having some sort of constraint and structure around you, but jumping into a really small box isn't necessarily a great plan either.