Well, it would make sense, and in theory it would reduce lag as our computers wouldn't hold onto each packet until it is completely full. But it would greatly reduce efficiency overall, as each computer with the algorithm disabled would be sending more data to the server far more often, and that could cause the actual servers to struggle.
This also assumes that the Guild Wars Client doesn't send a specifically sized packet, and that the Guild Wars servers only accept packets of that size, fixed packet sizes are easier and faster to work with.
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