A question on share consolidation

Hi there all,

Having semi-digested the fine work of double-O Zero for which I too am most appreciative I would like to understand a little more on the discussion as pertains to the likely share consolidation.

Some have commented that it is absolutely necessary and others that it will unequivocally be bad for mum and dad investors like me and many of you.

Just for my understanding may I ask the sensible people's thoughts on the following:

1. Is it really just a perception thing?
2. Why do you think it would be bad (didn't apple recently consolidate 1 for 7 going from to $700 to $100, now >$120? (Wish I bought at $100 and AUD/USD was 1:1 too.
3. Why does the Chairman believe is it necessary (I believe I read that he said this in OOO's dissertation)? I did note a comment about having too many chumps like me which I thought was a little harsh. I'd be happy to own a single Berkshire Hathaway share let me assure you.
4. How does consolidation change the registry? If I had 10 shares I'd then have 1 share in a 1/10 consolidation wouldn't I?

Thanks in advance, Coit

PS I could Google it but figured others may be interested in the responses too.