The Paradox of Choice has been written about extensively... including a great book and TED Talk. The basic idea is this: too many choices and we're frozen.
Standing in the grocery aisle with 72 spaghetti sauces does not make our life happier, it just makes us more confused.
But, it extends beyond material goods... we live in an age now, where the choices for what to do this weekend, for jobs, for passions, for hobbies, for restaurants are just as overwhelming.
I'm not sure the solution. Being aware of the problem is a good start. Not letting the infinite number of possibilities paralyze us, is maybe step two.
Just decide. It's better to buy a crappy jar of spaghetti sauce then to sit there and stare at them all for hours. You can always go back to the store and get the other one.