I think packed art is only good for a release version, but I do not know the relative sizes of the packed and unpacked for M:C
1:1
There is a compression option when packing files, but if you use it, the game will not read the files. In other words it will use up precisely the same amount of HD space. That is, the HD has a block size (usually 4kB) and each block can only contain a single file. This mean if you have 4 files using 0.9 kB, it can be packed to a single block, but the individual files use 4 blocks or 16 kB. This makes a minor difference, but it's not big enough to matter.
The main difference is startup time of the game. The game asks windows to open a file, reads it and then asks windows to close the file and then it carries on to the next file. Opening and closing the file is fairly fast, but not instant. Multiply this action with the number of files and suddenly you have a slowdown where you can easily tell the difference. Civ4 use pak files to get around this issue. Neverwinter Nights use zip files (with no compression?) to store txt files with settings. There are multiple formats to deal with this issue, but the idea is the same: reduce the number of tiny files to open and close in one go.
Git compresses everything you commit meaning it will not help to compress anything yourself. In fact if you pack two or more files together, git makes a new version of everything if you change just one file. If you store the files individually, then if you change one, git will only use the space for the change in one, meaning git will use significantly less space with unpacked files. Remember that git stores .git together with the files. In that hidden directory, it stores every single revision (commit) as changes compared to the previous commit. Removing the dll from git saved hundreds of MB of diskspace, not to mention download size as everything has to be downloaded when somebody makes a new checkout. Git isn't designed to handle frequently changing binary files. It's optimized for files it can view as plain text (like xml).
That randon art crash is usually to do with the ',' in an art entry at the beginning of it's path when it doesn't use an atlas reference, a lot of people put in a 'normal' path, and don't know about the comma issue.
"a lot of people" includes me
Can you please explain precisely what happens with and without the comma.
I still think it's a good idea to verify the files to be present. If I get to understand the comma issue, maybe that one can be verified as well. Ideally any problem should be reported either by the compiler or at startup. Also any CTD, which can be changed to an assert with an explanation for what went wrong would also be quite useful.