No more new IITs. Definitely it will dilute the image. Because the premier institution is fewer in number, the most brainy fellows try and get into it. It is my feeling that the curriculam and the brainy student batches alone help in the quality of the technocrats despatched and not in the teaching side.
If less brainy fellows too are able to get in, it will definitely demoralize the shinier ones which is not good.