I'm assuming the merged patch is a merger of all levelled lists, and that it can be replaced by the bashed patch using Gary Bash. I'm also assuming that they shouldn't be ran together, correct? The only reason I'm asking is because the merged patch can be merged under the bashed patch, which made me realize I really have no clue what these things are :celebration:
Well, basically, a bashed patch is some sort of intelligent merged patch.
You can, for example, use a naming scheme from mod 1 while using the damage-stats from mod 2.
But the best and probably most useful example still is Project Beauty. No matter the load order, Fallout's NPCs will always have the hair and faces of PB, even if another mod overrides them.
A bashed patch, is a lot harder to configure though. Plan some time for tinkering in FO3Edit and tweaking your bash-tags...
And concerning leveled lists: merged patch basically just merges them alltogether, while in Garybash you can define some mods as Delevelers, which means they remove items from the list.
I especially like the inventory sorter feature, whereas stimpaks and chems always stay ontop of my inventory. then weapons and armor. and so on.
just have a look here: http://www.uesp.net/wiki/Tes4Mod:Wrye_Bash/Bashed_Patch
Some features from garybash are missing, but you'll get the point.