I don't see competition as something negative. In fact, if Byrne's project works, Bitshares X can still be successful, and the challenge of getting crypto assets/securities to the masses will be shared. What his project does to educate people and overcome regulatory inertia can still be piggybacked by Bitshares. The other way around is also true.
Bitshares X is a bank and bitAssets exchange. Byrne wants to create a stock market where businesses can issue securities. It's very similar, but both platforms fill in a different need. Pretty much the same as different stock exchanges specializing in different equities/securities/assets (Nasdaq for tech companies, Wall Street for "regular" corporations, TSX for ressources, etc.)
I might be naive to believe both can coexist and thrive, but I believe Bitshares X can play the same field as Byrne's project and still be very profitable. We're talking of a couple of trillion dollars market, so splitting 2 trillions in 2 still leaves 1 trillion for both, no?
And competition has always pushed businesses to be more efficient and deliver a better product. That ain't so bad in my opinion.