Is there any benefit to doing so aside from making space? Does it increase performance, stability etc

Is it possible to merge 100 or so mods into 1 esp/esm file?

If it is possible is there a tool that is good for doing it and is it something a relative noob at modding could actually do? I assume the answer is no since I'm even asking

Merging 100 mods into one would likely create a [censored]storm like you've never seen, so I don't suggest it.

Ok what do you suggest as a good number? Are there certain mods that work well being merged and others that could be problematic?

Say I wanted to add a bunch of mods together that add items to the world leveled lists for example

It less an issue of quantity but more of type. By that I mean, you could easily merge 100 mods, and not have any problems. But if you merge the wrong two mods, you will bash your head against a wall.

Fairly new to the whole merging thing myself. But my general rule of thumb is, merge armor/weapon/graphic mods that other things are not dependent on. I also tend to throw in *very* limited mods that tweak quests. Like adding map markers to stones of B(something), or markers for the dragon face masks.

edit: Then if the merge throws up any errors, start isolating the problem mod, and not include it. Its not worth the potential grief that can come to haunt you. Oh, and try a bashed patch with your merge active. If the bash throws an error, its not a good sign.

Any script that references another via GetFormFromFile is not going to work if you merge them.