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I kept a Cichlid tank for years. Pretty aggressive and territorial. Many make the mistake of cramming as many in the tank they can fit, and then what happens is they'll lose them to predation and stress related issues. Got to give them plenty of room and hiding places for them to call thrir own.
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I have had cichlid tanks for +30 years. Your are correct in aggressiveness and territorial. There many articles written about the "Over Populated" theory though. It requires the right set up. The premise is that they are so busy trying to run off fish from their territory that no one fish can establish it as theirs. I am sure you have seen pics of these tanks. Very active. I am not sure as to the stress part. I have had over populated tanks for years. No problem if you have the correct tank set up and select the right fish.
The opposite of the spectrum is fewer and they establish their hidy hole, and NO ONE can approach or get beat up. That is also stress.
I don't know if you have followed the thread on my tank. 125g with +300 lbs of rocks to include ~30 hidy holes between the rock formations and the pipes/tubes (tiling/pvc) ranging from 5" and down. I can turn the water over 24x/hour. The massive filtration allows a large bio load. I have not had any diseases or deaths (other than age) in 20 yrs. My water conditions have been almost perfect for cichlids due to my set up.
I think the key is that they all grow up together. I have had many community tanks with my cichlids : giant danios, neons, cardinals, angels, gourami, beta, barbs...about anything you can think of....if they grow up together! They are not food or enemies but buddies.
Don't throw in an Oscar/Dempsey et al. that has been living in a tank by himself into a community tank. Mayhem.
Just observations and thoughts.