Well, I know I would, but my mod is trying to make use of and really show-off MGE but I can't say for others I would honestly guess that they would not. They would rather have it simple I believe.
Well I took a look and sure enough if only took about 5 lines of code to implement it so I went ahead and did so =) The way it works is that you can put a NIF file in the same location as the original one with the same name except "_dist" is tacked on to the end before the extention.
So for example, there's a file called "Ex_imp_dragonstatue.nif" in the Data Files\Meshes\x folder that contains the dragon statue you see in Ebonheart. I found anther file in there that was this crazy huge Daedric tower thing. I made a copy of the file in the same folder where the original dragon statue NIF was and then renamed it to "Ex_imp_dragonstatue
_dist.nif" Now in my game when I look at the dragon statue from far away it looks like there's a giant Daedric tower there instead =) And of course when I get closer it fades away to be replaced by the original dragon statue.
So you could use this to make optimized distant versions of your meshes, and other people could do things like release low res sets of meshes that you can just drop in your folder and MGE will pick them up instead of the non "_dist" version.
Not sure when it will be released, but it's committed to SVN =)