I still like having multiple websites because it protects against putting all your eggs in one basket. I've seen good websites lose traffic for reasons that had nothing to do with the owner's effort. Having another project can make those situations easier to handle financially. However, I agree that there is a limit. If you have ten websites but don't have enough time to maintain them properly, diversification becomes a burden. My ideal setup would be one major site and perhaps two smaller sites that require relatively little attention.