Without knowing your star schema table definitions, data cardinality, etc, it's tough to give a yes or no. It's going to be a balancing act.
For read performance, the fact table should be as skinny as possible and the dimension should be as short (low row count) as possible. Consolidating dimensions typically means that the fact table gets skinnier while the dimension record count increases.
If you can consolidate dimensions without adding a significant number of rows to the consolidated dimension, it may be worth looking into. It may be that you can combine the low cardinality dimensions into a junk dimension and achieve a nice balance. Dimensions with high cardinality attributes shouldn't be consolidated.
Here's a good Kimball University article on dimensional modeling. Look specifically where he addresses centipede fact tables and how he recommends using junk dimensions.