ahh that makes sense, I'm on board now after reading the rest of the thread and your latest example. Your orginal example actually makes sense. Read everything before posting... read THEN post...
meshes are stored "once", and can then be rendered with many drawcalls at different locations (just a matter of setting the transform matrix) (edit: as prof said above) meshes can also be stored more frequently for collision purposes (however for physics I guess still a lot of basic primitives are favored), but also for…
The BF2 buildings are a great example, especially like you said about the scale of them. The downside however with those big meshes, especially in some of the more crowded areas where a LOT of fighting is happening ON the building itself, (Such as the first flag cap area at Karkand) is the collision that has to take place…
Collision and lighting calculations are a couple improvements. Object culling is another big plus for using instancing. Instanced triangles are always better than non-instanced. I can't copy and paste from the UDN as far as Unreal goes, but it is definitely a big improvement. Remember that you will always draw the entire…