Consolidating utxo's is more akin to moving cash from old physical wallets to a new wallet.  Or taking change (coins) to coinstar to get paper money and then putting it in a physical wallet.  

It sounds weird because typically no one carries multiple wallets on their person but change (coins) require a centralized service to convert back into paper.  Bitcoin doesn't need a third party to accomplish this, 

 Water, paper, the cleaning team...