I'm not sure this is true. It seems to me that people who don't have insider knowledge end up with stuff they like -- they aren't lining up to pay $350k for something they don't like or understand. Ironically, they're probably ending up happier than some collectors trying to speculate who end up with the B.S.
On the other hand, collectors who are rich, dedicated, and informed are a huge component of the total money spent on modern art, and are big players (iconic example: the Guggenheims). They can end up having a tremendous influence on the art world.
Bottom line: don't feel sorry for art collectors. And if you collect art, buy what you like! Not what people tell you you ought to like!
Another good example: Peter Norton, of Norton Utilities, has been a very influential collector. He's probably one of the hundred or so most prominent private collectors of contemporary art.
On the other hand, collectors who are rich, dedicated, and informed are a huge component of the total money spent on modern art, and are big players (iconic example: the Guggenheims). They can end up having a tremendous influence on the art world.
Bottom line: don't feel sorry for art collectors. And if you collect art, buy what you like! Not what people tell you you ought to like!