So my premise that utxo consolidation from time to time being a good practice is wrong because it depends... I see. Thank you folks!
Yup it depends. This is a problem space that we are starting to think deeply about, but it is still a new problem. We may learn a sweet range, like 10,000 sats - 200,000,000 sats where its always going to be not too big and not too small. Then wallets will just manage this for us. Until then, we are guinea pigs. 😆