Do you think there is a problem more generally with consolidating (losing specialisation/persons with expertise in a specific area) or do you think it is more efficient overall?
By far and away the primary concern here is what's best for the end user of the service, and to that end, no, I don't think that consolidation of services is necessarily a beneficial thing.
Sure, you'd think that larger organisations (larger is relative, we're still talking about some pretty tiny charities) would be better equipped to cope in certain respects, but you tend to find that niche organisations do what they do extremely well, because they've been founded because of specific need, guided and driven by people who have an in depth understanding of the complexities, and when you take away their reason for existence and hand it over to a different organisation, quite often a lot of that specialist understanding, knowledge, talent and ability is discarded or lost due to natural atrophy (people in their 50's with 20-30 years experience choosing retirement over TUPE etc).
As I mentioned, my place has been on the 'winning' side of this LA caper, but it's not really 'winning' because the sector has lost a very niche small charity as a result, and some of the service users are still struggling to adapt to the change and view it as a negative and retrograde step.