Wow. I don’t even know where to start....
Nearly everything you said right there is wrong.
1.) They can create different TYPES of cryptocurrency (alt-coins) but they can’t create more Bitcoin than the mining process will allow. The mining process creates a few Bitcoins every 10 minutes or so and will continue to create less and less for the next hundred years. Once 21 million are created (around 2100) there will be no more. Just like there are different types of metal that can be traded - gold, silver, copper, nickle, aluminum, platinum, etc... There can be different types of cryptocurrency. If Bitcoin is the digital version of gold, LiteCoin could be silver, DASH could be nickle, etc... The value of the new coins is decided by the market and how much people think they are worth. If people believe they are useful for a purpose they will value them higher and pay more for them.
2.) Blockchain is the technology that allows Bitcoin to work. It is a public distributed ledger that can be used for many purposes but in Bitcoin’s case it keeps track of the Bitcoin transactions. Think of “blockchain” like “database”. A database can be used to keep track of your bank balance, a baseball card inventory, user information at Facebook, etc... It is the technology that is used to allow some activity to happen. A blockchain can be used to keep track of crypto transactions, it could be used to verify contracts, it could be used for secure, verifiable voting systems, etc....We are just now starting to scratch the surface of what can be done with blockchain.
Bitcoin may continue to hold it’s value or it may crash and go away. I don’t know. The blockchain technology that it runs on is not going away and will be the future of computing in 10 years.
I don’t think you said anything that contradicts my impressions. When you say the competitors aren’t Bitcoin, that’s not exactly true. They are other forms of cryptocurrency that compete with bitcoin. Who’s going to decide what’s real fake money?