It is relevant because I don't think the rest of the projects will end up absorbing all of Ethereum's hashrate. First of all, some of the current miners will sell their hardware and stake ETH instead, becoming validators.

Secondly, I tend to think there'll be a mass extinction event, where most useless projects will eventually die off. You can mine all you want, but if there's no real utility in yet another PoW project (and there isn't), you won't be able to sell the coins at a price that justifies running the operation.