yes, crazy dilution, to the tune of 2.5% of the float. so, that takes care of issue #1.
as for issue #2, no kidding basic 3d printing tech is becoming commoditized. i can buy a maker bot et al for around 1700 bucks right now. the future of this technology imo resides in more complicated industrial applications, and in this space, ssys is opening up an extremely wide lead-through the objet merger (multiple materials manufacturing) and partnerships to add integrated circuitry to the process (this is of huge value to aeronautical concerns, among others, who are proving to be early adopter consumers of this technology.)
so, speaking to your thesis generally, i agree-it's going to become a crowded space, and of course there is likely to be some margin erosion. but speaking specifically to the prospects of this stock, the prospects are very bright indeed. the plain-spoken and hype-averse nature of mgmt is, in particular, a very good sign.