I still don't understand why it cost more to SEND something if you have more transactions going IN to your wallet.
Why does the system care where I got the money from (as long as they are verified)?
if I want to send 1 BTC why does it matter if I accumulated my "wealth" by 5000 or 5 transactions? This hurt business that sell t-shirts over people selling gaming computers then, since they have more transactions with less money coming in.
It only hurts if the amount being spent is so small as to be considered "spam" by the network.
The problem is that spending more outputs results in larger sized transactions (in terms of bytes). Those bytes take up space in the blocks that the miners are creating, and there is a limited amount of space available in each block (currently 1 megabyte). So block space is valuable to the miner. They total fees they can earn for a single block depends on the fees paid per byte of transaction size by those sending transactions.