I haven\'t measured our average message size, but I would bet our average message size is around 25 bytes. Our dead reckoning system sends positions, velocities, angles and angular velocities and gets all that in 25-30 bytes.
Since many players are being updated each second, merging packets *really* helps network efficiency. By merging them, you only get per packet overhead on the merged version. So you get 10-20 bytes of overhead per 750 byte message, instead of 10-20 bytes of overhead per 20 byte message, which is 3% overhead instead of 50%.
In a smaller game, CPU utilization may be more of a factor but in an MMORPG, merging short packets is definitely worth it, and I really don\'t think it takes much CPU overhead anyway.
Just my $0.02,
Venge