The point of the split was not to create "free money", and it didn't even do that.
The market cap of Bitcoin is ever-expanding, remember that as I elaborate on this point. When I got into Ƀ, the market cap was less than 10Bil. It's over 50Bil today. It will continually go up as more people get involved.
BitcoinCash had initial mining strength over 30+% and it has been slowly falling, but that's beside the point.
The point is, that when the mining power shifts, and a new coin is created -- the money does not come out of "no where". It comes from the other coin.
The reason you don't notice is because there has been a huge wave and surge of newcomers lately, which make up for the fall in price. If you will notice, Bitcoin did actually drop a few hundred down into the 26-2700 range for a bit, before skyrocketing to 3400+.
The BitcoinCash caused a minor price decrease which was nullified by the newcomers and new bitcoin services that literally buy Ƀ at market value all day, indiscriminate of price.
All of these factors will cause the price of the original Ƀ not to fall, and to slowly climb.
BitcoinCash was created to be the sound money that Bitcoin was envisioned to be, designed the way it was meant to be. It was not meant to be a money-making scheme, but a better way forward.
I do not think it would be dangerous for Bitcoin if even 1000 alts are made from it, as we have now seen that the efforts of nearly 30%+ of the bitcoin and mining community have fallen upon deaf ears and are losing support. I think that coins with less noble causes would not succeed in the market, unless they sufficiently brainwashed the users into thinking theirs would somehow be superior.
Yes there is that possibility as well... One where the money did come out of Bitcoin, but since there was so much demand we just didn't notice it.
For example, say there was no split and we got passed the uncertainty surrounding Bitcoin and August 1st, Bitcoin would have increased by the same amount it has currently, PLUS whatever amount Bitcoin Cash is currently worth.
However, that scenario is much harder to actually measure but one I have considered as well. :)
While I agree with you that new investors coming into the space helped prop up Bitcoin and prevent losses, I would argue that a lot of Bitcoin's new found value is coming directly from Bitcoin Cash and the hype around it.
You can argue all day long, but in the end Bitcoin Cash created money out of thin air. The lost mining power in Bitcoin has already been replaced on day 1 (for the most part) by mass mining operations that have been preparing for this day for months and anticipated the split.
I know many of my friends sold all the BCC they got for a huge profit at over $600 and just bought more BTC and ETH with their profits. In most of these cases IT IS free money because the other coins are not effected by it and the entire cryptocurrence market cap grew by over $30 billion in a matter of days because of all this hype and the air drop of BCC!