It always has to do with dilution, because dilution affects market valuations, even in insane price swings caused by hysteria. To contend that dilution is immaterial to price potential is absurd. If your profit is greater because you are averaging down, that doesn't negate the relevance of dilution; instead, it means that in order to get that greater return you have had to BUY more shares to account for the impact of dilution on the price.