What if duplicate wallet addresses are created?
The probability is unfathomably small. In practice it will never happen. You can find one billion friends all keep generating trillions of addresses every second and there won't be any duplicate addresses til the end of the life of the sun.

Edit: this actually exaggerated a bit. By virtue of the Birthday Paradox you only need to generate 2^80 addresses (not 2^160) to likely get a pair of duplicate addresses among all the addresses generated. So this address generating party won't be able to run that long.

On the other hand if your billion friends all keep generating addresses in an attempt to get the same address as yours, then it does take forever to happen.