Paying attention to what other producers are doing is seemingly a good thing. You can keep up with the trends in your chosen genre, standards of production, and it helps you network with other producers while you discover new music.
Except that it's not such a black and white situation.
Keeping in touch with what is going on in the scene can also be a frustrating and distracting experience. Listening to too much music from fellow producers can cause you to become too conscious of the very things I mentioned earlier. Remember, as a producer, DJ or any other type of musician, you want to develop your own unique style, something that sets you apart from the crowd. You're not going to acheive this by constantly comparing your music to that of others. More importantly though, comparing your music to whats out there can cause you frustration in the sense that you start becoming competitive. While some competition is a good thing, particularly if it's friendly competition that pushes you to acheive more, becoming too involved in this side of things is deeply negative. Everytime someone else you've been comparing yourself to gets some form of recognition, your immeadiate reaction will be one of dissapointment and bitterness. This is a poisonous mindset. Dwelling on these thoughts will truly kill any excitement you ever had about making music.
Remember, the reason you got into making music was because of your passion and excitement over what you heard, and this should be at the forefront of your mind at all times. Yes, it's good to have a benchmark to track your progress, but the only thing that truly matters is that you enjoy the creative process. If you are writing music for other reasons, then you need to get the fuck out now. Writing music in search of fame or recognition from your peers or other people in the industry will not lead you to happiness if you don't enjoy the creative process itself.