I just find bacteria to be so alien it is very hard to come up with a hypothesis at all.
Have you considered plants at all? People have been breeding them too. Look what we did with maize becoming corn. That wasn't a loss of genetic diversity. Or how about all the amazing flowers that have been made? There's no way all that stems from some super flower genome that gets chipped away into all the breeds we have today.
And crazily enough, all the plant developments fit perfectly with the Theory of Evolution's mutations and selection mechanism.
It really is correct.