Okay....I've been part of the Oblivion modding scene for 5 years, and the FO3 scene since it came out, and what on earth are bashed patches for?
Well a bashed patch is a lot of things today. Originally it was a way of merging leveled lists. The issue being that multiple mods that alter or add to leveled lists and loaded into a more traditional load order would still be subject to the rule of one: that the last loaded mod would win the conflict.
So having mod A that has leveled list encounters added - say ancient snow yeti of 5 variety then have mod B loaded after that adds purple ants. With that scenario (and if I understand correctly - always willing to be corrected I am) then the Yeti might not appear as the lists with ants would override the mod A list.
To resolve that the tools for merging lists were created. With Morrowind I believe TESTool was implemented. With Oblivion Wrye Created Wrye Bash and it is still the most developed version of the Wrye tools. He then went back and created Wrye Mash for Morrowind which may get an update soon by Pacific Morrowind. He announced that he would not create one for F3 as he planned not to play or mod it in favor of having a life (good for him). So it has been late in coming for F3. Elminster stepped up and implemented the most bare bones version in FO3edit called merged list plugin - which merged list doing the basic necessities so that lists do not block each other. It is cumbersome though by comparison to Wrye Bash and lacks many things that WB can do that no other program does.
What you might ask?
Well here is brief list that I will try my best to give everyday explanations for:
1. Merged Mods - if a mod is in the load order that only changes existing records (of either the main esm or even other esp) then that entire mod can be merged into the bashed patch. It can then be left deactivated. This greatly reduces the number of esp you need active and makes it so that you can have well beyond the 254 limit of mods. My oblivion install is near 380 esm/esp. This is also internally consistent in that the order in which mods are merged is also a the order in which records are over and under written. So like all the merged mods are merged and then even in that there are conflict winners and losers.
2. Bash tagging - with these tags (only viewable in Wrye/Gary Bash) you can tag a mod with specific tags so that the records indicated by these tags will carry forward and be merged/bashed patch winners even if they would normally be losers - this is great for when you need the merged mod to lose at some records but win at others. Bashed tags are still being invented and implemented with Wrye Bash and it is awesome that Valda is willing to take requests for them here ... hint hint modders.
another example of bash tag usage is that you could import records from a mod without ever even needing to activate or merge the mod. This is usually though for graphics mods like lighting or face data.
3. Game Settings. Again like tags this is an area of growth with each new update. With these then you can have game settings like crime detection, Bounties, Length of time essential NPCs are unconscious and may other settings become settable with each new bash. So if you set NPCs to become essential for 10 seconds and then after playing find that is too short rebash and set for a minute.
With Wrye Bash this is getting into some pretty arcane and cool things which is in turn out dating many other mods and thereby shrinking the the load order further.
A well made and full bashed patch can almost constitute an overhaul in and of itself. It really is what FCOM is about.
Thanks to Wrye, Pacific Morrowind, and now Valda these tools keep mod using and making vibrant and alive.
[edit] Oh yeah and lets not forget that these Bash programs also have the best mod installers attached that allow for very http://www.gamesas.com/index.php?/topic/957424-custom-bain-projects/page__p__13828698__fromsearch__1entry13828698 and controlled mod installations.