Dancing Astronaut engages this question in an editor roundtable.
I don't think we've reached a breaking point in Canadian festivals yet. What I do agree with Dancing Astronaut is that there are opportunities for new festivals if they create a unique experience for fans as EDC and Tomorrowland have successfully done.
The question that I ask myself is whether there is enough fresh music created to justify seeing more than 1 or possibly 2 festivals a year? With so many DJs using the same tracks and mashups will EDM fans begin to tire of the whole experience?
What I like to see is some promoters taking a bit of a risk and seeing what sticks. Digital Dreams is a perfect example as they introduced a techno/house heavy lineup in Toronto for Canada Day and were rewarded with a successful event. I await to see their 2013 lineup but I hope to see even more next year. If you have a big enough to hold a festival to cater to all tastes then that's great, but if you need to make some decisions, then it's better to have a point of view than none.
Random thought: I'd love to see something like the Warehouse Project come to Canada.