The guys in front of him at the PG position in 2012 (Kyle Anderson, Larry Drew II, D'End Parker) are not going to be at UCLA for long.
Plus, "Slow-Mo" will be playing other positions besides PG. As such, there are several options where Dom, Kyle and Larry Drew II can play together or back each other up when the other is out for a blow or because of foul trouble.
And you know what they say, "tournament time is guard time." Having great ball handlers bodes well for a deep run come March.
If Dominic sticks it out like Darren Collison did (who also had to play second fiddle to other guards), I think it will be better for him in the long run. See what happen to DC.
Finally, it's all about competing. If Dominic thinks he is a great PG (and judging from all those You Tube videos, he looks like he has the tools to be one), he should not shy away from competing "day in" and "day out" against other great guards.
Please come back, Dominic.