Do UTXO's ever get consolidated to avoid complexitity?
When you pay someone using a number of utxo's to fund your payment, the output being created is a new single utxo with the total amount of all those input (minus change and fees).  Effectively, you are consolidating utxo's as inputs to fund your payment.

UTXO consolidation and breakage happens all the time by normal payments and doesn't usually require special intervention or handling by the user making the payment.