Dao funds are used for what people vote for, primarily development that benefits the entire community

Yes, correct. Hence why I suggest having a large war-chest for it, to help provide funding for lots of different types of proposals. If we had small funding, I would not vote for any writing contests, as I would instead prioritize development costs. If, however, the funding was large enough, I would vote for other types of proposals, because they do in fact add value to our platform.

The proposals don't benefit everyone, for example two are related to building wallets, why do we need all more DAO funded wallets?

Options are never a bad thing. Hive is literally less than a week old, so obviously you're going to get lots of projects popping up in the same space. That's what happens in a new environment. Competition will result in one of these wallets being the best, or at the very least, the wallets catering to different niches ( ie one for newbies & one for power-users ). The more projects that get funded will result in a stronger ecosystem.

Charity is not charity if it enforced, even via democracy

I'm honestly not even sure how to respond to this. Charity can in fact be charity if voted on through democracy. I'm confused as to your idea of "enforcement" when in context of the DAO, perhaps try to elaborate on this better?