I'm planning on merging my package files but want to do my homework first. My main question is how many files should I merge into one package, or how big should that merged package be? whats recommended, or what do you do?

thanks

If I recall correctly the recommended file size for each merged package is around 200MB. It's the same size the Launcher would make if you installed sims3packs.

The size of a merged package is, however, not identical to the size you would have if you left the files unmerged. Hairs, for example shrink in size if you merge them, so you can merge up to 280MB of hairs and still end up with a merged package of around 200MB.
Furniture and objects, on the other hand, seem to increase in size after merging, therefore some 150-170MB of object files will result in some 200MB of merged package.

I do not think 200Mb size matter. Most all my CC combined into two separate package file. One at 1.23Gb and other at 483MB. There are hairs and objects and patterns and sliders and mods all combined here and everything work fine. I have 1,200+ files before merge.