The phrase suggests that even positive things can become negative with excess. She realized that buying too many shoes was too much of a good thing when her closet overflowed.
Pro Tip 2/3
Common Collocations
It's often used with 'can be harmful' or 'is never good' to emphasize the potential danger. Studying is important, but remember that too much of a good thing can be harmful for your health.
Pro Tip 3/3
Situational Use
Used when warning someone about overindulgence in activities they enjoy. Playing video games all night? Too much of a good thing, isn't it?