Seth Godin:

The problem with competition is that it takes away the requirement to set your own path, to invent your own method, to find a new way. When you have competition, it's the pack that decides what's going to happen next, you're merely trying to get (or stay) in front.

That's the rub.

If you focus too much on the competition you run the risk of working to meet their standard. To reach where they are at rather than making something new or better. You set them as your benchmark, rather than creating great stuff for customers, readers, you name it.