Another Google engEDU today!
The Paradox of Choice - Why More Is Less talks about the negative side to giving people more choices.
Some of the negative issues he talks about:
Choice paralysis is when too many choices available, and now one can't choose between many potentially worthwhile options, so they choose nothing.
When adding additional exclusive choices, at some point people start regretting the choices that they have made because another one "could have been better". That is to say, each choice brings with it an opportunity cost which quickly negates the marginal increase in utility.
The comparison of capability vs. usability. If a device has more capability (more choices in how to operate it), it lowers its usability. I've found this to be true at work. If I build a complex interface that is highly capable, nobody can use it :)