I'm not sure, but I believe it results in increased heat on the GPU/CPU only, as the method is calling upon the same texture assets in the raw data, DXT an mipmap would probably just put/grab what it needed depending on how much streaming technology is built into it. This is ignoring that the other method being texture packs, would be 4-8 times as many pixels or more in many cases ignoring DXT encoding for video cards, or as noted, the greater evil here.
It's okay if you don't like me, I'm American. It wouldn't be the first time. The OP was having a crashing to desktop issue, what I was writing was addressing that as the main issue, because what's the point if the game won't run for long periods of time? If it derailed or not, it wouldn't be my fault. I started learning to mod a month after I got FO3 in 2009/2010 just after it got ported to PC. We should try to listen better I know, an not make blatant assumptions.
The underlying issue was traditional end user problems of grand expectations/desires which are a bad idea as it is more easy to break the game. It's not off topic to deal with missing standard operating procedures or even the idea of being conservative. To that end, in my experience for any large mod, it's better to just run that alone an slowly add to it accurately for stability, instead of what we actually want as end users. Because it was tested.
Studio level quality assets were mentioned because running a negative LOD bias on them results in the same effect as running decent post processing or the HD DLC for Skyrim, MSAA on old games, an other non-ENB settings or tweeks to gain a better looking game to play. It's just with these Bethesda games, the original .BSA assets being "good" or not in the original form, it's a more stable game that way.
Studios don't have access to the tools we use, so it's not as good, but it's much better than what we can make as a community, because we all use different methods an settings, have different opinions, and studio is pretty much less mixed an standardized functionality for assets. Whatever opinion we might have of it, it's professionally made assets for a commercial product, tested an patched.
Not forgetting the fact it's much less work on our part as end users to utilize it or in this case even expoit it, simlar to setting Fallout 4 texture streaming distances that are greater than consoles, same idea kind of. More pixels works on PC, it's just that people assume they need community textures to do that. It would be silly IMO to ignore generic gamer settings, tweeks, knowledge, and wisdom just because we can make/use our own assets instead.