I did this a long, long time ago as a proof of concept, and the difference was amazing! I put barrels together in Blender (in groups of 4, 8 and 16) and compared it to the same number placed individually (over a thousand in the level editor). This was in the early days of Reloaded, when performance wasn't near what it is now. It is a worthwhile endeavor in my opinion. If you have the time, and patience, you can also use separate models and combine them as well, using a texture atlas, as long as your atlas is within the max texture size. While I haven't tried this myself, I wouldn't go for a 4096 x 4096 texture, though. I suspect (and this is only a guess) that the trade-off wouldn't be to any advantage. Getting things exactly where you want them in a modelling program vs. dragging and dropping in the GG editor, though, adds another dimension of effort!
Desktop: i7 4770@3.4Ghz, 12GB RAM, Win 10/64, GeForce GTX 1080, 1TB SSD, 1TB HDD; Laptop: i7 4800MQ@2.7Ghz, 16GB RAM, Win 10/64, GeForce GTX870M , 1TB SSD.