Is bitcoin better off with 1000 people holding 1 bitcoin each, or "consolidating" to 10 people holding 100 bitcoin each?

The first case (1000 bitcoin holders) has 500,500 different combinations of people who can send bitcoin to each other.

The second case has 55 combinations.

Am I misunderstanding the word consolidation?

If I find out someone is involved in consolidation, should i jeer them, laud them, or just shrug my shoulders (as in, whatever, dude)?

Seems like consolidation might be good for bitcoin as digital gold (desire greater to hoard 100 units of something than 1 unit?), not so good as peer to peer cash transfer network.