That idea is good for some things, but sometimes it just makes clutter and makes the model hard to understand. Merge features are one of those time. If you have 7 merge features in a row as apposed to one, I would much prefer to see just one.
Same with rounds I am starting to really like the idea of having multiple sets of rounds in the same feature. If Pro/E had the capability of putting in the rounds in the order the sets are listed, I would probably only have one round feature at the end of the model tree.
In my oppinion the many simple features idea is one modeling technique, but it is not the only one, especially with the WF5 removal of resolve mode.