It's only bad if you feel overwhelmed by it. Because of the projects I'm currently working on, I, too, have thousands. So what I do is when I'm doing a profile of a person I'm not directly related to, I make sure the dates and locations are correct, the biography has the basics like parents and children and the information is well-sourced with categories for locations, cemeteries, etc. Then I remove myself so a relative of that person can adopt the profile and add more personal information.
Once a week, I sort my watchlist by date, reversed, and work a few profiles that haven't been updated in a while. If I'm not directly related to that person and the profile is correct, well-sourced and connected, I release it, too, to make room for new profiles I will no doubt be creating for my projects. So far, this is keeping my watchlist under control.
Anyone have other ideas for keeping their watchlist under control?