At some point, that will happen. There will always be a bit of room for the small host though. Competition is good for the end users, as it keep the prices down and the offers generous. Even if hosts start disappearing/closing, in the long run the good providers are the ones more likely to survive, so it's not all bad.

Personally, I try not to see things in "good" and "bad" notes. The market finds itself where market forces push it to.