No, there's nothing wrong with doing that, though it could potentially harm chances of figuring out the cause of a problem. However, the usefulness of those core dumps to the average person is zero.
Also, no, that setting will in no way affect the occurrence or frequency of occurrences of blue screen errors. If you're getting a blue screen error message, that is a sign of a very serious problem, usually on the order of defective hardware. If you're getting these types of errors, you might want to pay attention to what it says. At some point it should list a file name, probably ending in .vxd. Write this down, enter it into Google, and see what turns up. Odds are, whatever that file is the driver for, is your problematic piece of hardware. Hopefully it's not integrated into your motherboard, so you can just yank it and replace it with another. Otherwise, it's either deal with the blue screen errors or get a whole new replacement motherboard.
I was just wondering whether it would be safe if I done the following :
My Computer Properties > Advanced > Startup and recovery Settings > and change the small memory dump (64KB) to (None) as the blue screen appears every so often. And with doing this would it stop the blue screens?