Martin Schwimmer points out in his Trademark Blog that the most recent SOTD stated that "an industry which sells 30-40,000 units a day worldwide at $2 to $3 per unit gross margin, cannot support 122 healthy companies."
Conclusion? "We are not going to see 122 registrars a year from now."
My conclusion? Both have it dead wrong. In this case, one has to follow the money back to its originating source and realize that those 30-40,000 units support far more than the 122 registrars that take credit for those sales. What about the tens of thousands of ISPs and Webhoster's that actually drive the demand for these services? 122 registrars is a drop in the bucket in comparison.
C'mon folks, its a big world out there - the sun doesn't revolve around the DNS.