As the retired chief engineer from a medium sized manufacturing company, I have had a lot of exposure to sales people, both at higher levels and at the ground level. The sales people have what they have called the KISS system -- "Keep It Simple, Stupid." Good sales people have generally recognized that too much choice paralyzes potential buyers.
As others have noted, including the speaker in that TED video, there is an optimal choice level. A certain amount of choice can be liberating, too much choice can be paralyzing.
Part of the reason we have a lot of choice is that a lot of people (that is, companies) are trying to make a living and are therefore providing product offerings in the hopes of attracting buyers. It's not some kind of conspiracy to make people unhappy.
- Glenn