There's still much prestige in the NBA ...... it still showcases the best athletes playing a universal sport.
However, I agree with the opinion (LBJ's among many) that there are too many teams in the NBA ...... IMO the problem lies more with the fact, that there are many "inherently disadvantaged" teams in the league right now e.g. frugal team owners, geographical, tax rates, stadium issues, etc ...... of course all of this with the backdrop of the US economic downturn.
These disadvantages plays a huge part in the parity seen in the NBA right now.
Aside from a few misses, David Stern has actually done a great job through the years ..... the NBA's salaray cap & free-agency rules are some of the most stringent and detailed in all of pro sports.
IMO the NBA is moving into a much better direction ...... the new CBA helps in controlling salaries and is probably the league's best attempt to restore parity by way of the new punitive luxury tax rules.
The aim of the new CBA is already evident ex. KNICKS had to let go of Lin, HEAT/LAKERS only able to give out vet-minimum to fill their spare roster slots, BULLS had to trade Korver & let some assets leave, etc.