They are absolutely necessary for dynaverse play on SFC2EAW and SFCOP, although the future of the dynaverse is clouded atm. When you have plasma, ftrs, PF's, drones, mines, shuttles and terrain in a 3v3 match, models that come into view that are far off are rendered as if they are up close and you can see the frame rate tank.
A lot of model users are unfamiliar with exactly how models affect gameplay and just 'drop' them into their model folders not knowing the consequences of thier actions. Likewise a lot of modelers are unfamiliar with why LoD's are used and therefore dont bother. When high texture and high poly models are used without LoD's, they are usually ok in single player skirmish and solo campaign games... but put them into a scenario like I spelled out above and disaster strikes.
As a dynaverse server admin, I can tell you first hand that it is irresponsible of modelers to use high poly models, high poly textures without using LOD's and then release the models unto ususpecting victims. It's hard enough to get a good PvP match in a game to work, and then having a model kill the connection because the host's frame rate crawls to a stop and throws everyone OoS... is just criminal. Your modeling license should be revoked.
Hats off to Kreeargh for championing this subject.
It's an important issue that I would like to hit over Adonis' head till all his modeling ability is knocked out of him and he isnt ever able to release another model again... hehe. Edited for spellin