I watched that video, and yes, it looks awful, but has it "metastasized" and "gone insane"? It's Canal Street. The voiceover declares it's the "most expensive" part of New York and calls it "Tribeca" and "Soho." It's Canal Street, being Canal Street.
I looked at those wares vendors had laid out all over the sidewalk, and I'd like to bring some lateral thinking to the problem. The product you see there is almost entirely women's handbags. It could become utterly uncool and dumb to carry a handbag. A handbag is literally a burden. It makes you vulnerable to theft. You don't need it. Designers whose clothes you may not be able to buy make a customer out of you by offering this carrier of their name, causing you to feel that you need it more than you do. Wake up to the post-handbag world and those guys hawking handbags will disappear.
What, beyond your iPhone, do you need to carry these days? The closer you can get to nothing, the better you are. That's the idea to sell, but who is motivated to sell it? I know I'm being silly, at my age and my distance from New York, to try to influence the anti-handbag trend, which has to hinge on the pleasure and freedom of the consumer, not hatred of street vendors. These are guys making a living, and if your aim is to walk down an uncluttered, uncrowded street, reroute off Canal Street.
By the way, I used to live in NYC — from 1973 to 1984 — and 2 things about me back then: 1. I avoided Canal Street, unless I was swooping into that one place where I bought art supplies, and 2. I never carried a purse, I went out of my way to figure out how to carry everything in various pockets, I had a whole feminist/hippie conception of what I was doing, and I regarded women with purses as embarrassingly uncool.