I sometimes wonder about that too : ) The way I see it is I get to see lots of interesting things in my activity feed. I did worry that my activity feed would become unbelievably full the more people I added to my circle but instead I find it fluctuates. Not everyone in my circle is active everyday and there are some people I haven't seen anything from for ages. I do need to keep on top of though or it will get out of control
It is a useful promotional tool too if you work on the 'sharing the love' idea. If I favourite something or add someone to my circle who appears in my activity feed, they show up in the feed of whoever has added me to their circle, PLUS, the person or thing I've just favourited or circled will be notified and may like what I sell and add me or one of my items to their favourites which will then show up in their activity feed and so on and on and on...
Phew! did you follow that lol! : )