why don't galaxies form big blobs of stars merging together, and just have little gay stars running around instead?
a blob would just implodeneed the stars to spin to keep up a form, like a galaxy disc
They do form clusters. The majority of stars are formed in clusters, but most are not gravitationally bound, and so after a few million years the stars disperse. But there are globular clusters (pic related), which formed in the early universe, they are much denser and are bound. Few stars actually merge because they are tiny in comparison to the size of their orbits, some do.