consolidating UTXOs should only be done for smaller UTXOs? If they are larger, is there much point, as you would then combine UTXOs and require larger amounts of change outputs when spending? What do you see as the downsides to UTXO combining? Privacy upsides/ downsides? Thanks!
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With UTXO consolidation there is a very real privacy concern. Remember, when consolidating UTXOs you are linking them together. Observers of the chain now know they were owned by the same entity.
Regarding UTXO size, this chart should proof helpful: 

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