The storage cupboard overflowed with piles of games, equipment and donated items at a nursery I visited. The pink plastic castle was something the nursery didn't want, "But we had to keep it because Olivia's mother gave it to us and we wouldn't want to hurt her feelings." They certainly didn't need three move-the-beads-along-the-wire boards – one would have sufficed.
A cluttered play environment can make children restless and unfocused. When toys do not lead to deep engagement, children are easily distracted and tend to flit between occupations. Having more stuff certainly does not make children happier and often stifles imagination. Since less equipment requires more imagination, try trimming back to a few open-ended toys and see what happens.
P.S. The calm environment at this setting enables this child to pursue his imagination without distractions.