The point about closer voices blending more readily together is certainly true. The one about dissonances I wouldn't really agree with, unless we're talking extreme differences (four octaves or more apart).
It is true that some dissonances become already less pronounced when occuring in voices a bit apart (1-2 octaves) than if they're close to each other, but this is not universal. The main counterexample is the perfect fourth, which if you play it as such sounds just perfectly good. But put one or two octaves in between, and it rubs much more, a phenomenon that has led to the (IMO wrong) classification of the fourth as a dissonant interval in general.
Here's a table of which intervals are more consonant in close vs wide positions. Of course this is only a rough overview; actually it always depends a lot on context how different intervals are perceived.
Interval |
close |
wide |
minor 2nd |
very dissonant |
dissonant |
major 2nd |
dissonant |
consonant |
minor 3rd |
consonant |
reasonably consonant |
major 3rd |
consonant |
very consonant |
perfect 4th |
consonant |
somewhat dissonant |
tritone |
usually dissonant |
dissonant |
perfect 5th |
very consonant |
very consonant |
minor sixth |
consonant |
slightly dissonant |
major sixth |
consonant |
quite consonant |
minor seventh |
somewhat dissonant |
somewhat dissonant |
major seventh |
somewhat dissonant |
quite consonant |
octave |
very consonant |
very consonant |
So, your point holds true in the sense that some severe dissonances become much less jarring in wide spacing, but the tritone sounds also dissonant in wide spacing (it depends much more on context than spacing), and minor thirds and sixths also tend to work worse in wide spacing.
Why is this? Well, it's down to physics, to how overtones align. A major second (in Pythagorean tuning) has a frequency ratio of 8:9, both pretty high numbers so it's hard to latch onto. But a major ninth has a frequency ratio of 4:9, which is much clearer. Similar story for the major seventh (close 8:15, wide 4:15) and to some degree also for the major third (close 4:5, wide 2:5) and perfect fifth (close 2:3, wide 1:3), but these are already clearly consonant even in close position.
But for the fourth (close 3:4, wide 3:8) and minor sixth (close 5:8, wide 5:16) it's the opposite way around: the wide voicing has higher numbers in the frequency ratio.
For the tritone and minor 2nd and sometimes minor 7th, the frequency ratio is ambiguous, so for them context is more important than spacing.
Now, when you go to very large spacings, all of this becomes less important again, in particular with instruments of a relatively mellow timbre (which have less overtone content relative to the fundamental) or with strong inharmonicity, because there you simply don't have much of any high-numbered overtones that could cause dissonances to obviously clash. So e.g. tuba and flute can play together in very strange harmony without it sounding obviously dissonant, but it will still sound strange simply because the voices are so disconnected.