Aha jimoblak. You have made a good point - for bookwork or other such projects, a psd file will work just fine.
The bulk of the files I set up are for museum or trade show murals. I am working with images that are only 125 dpi at final size, but a flattened tif as large as 1 GB is commonplace. Our RIP will only process eps or tiff files and InDesign can take a long time to export large eps files. By building a background collage in PS and flattening it there, I can keep the file size down, the transfer time down, the RIP time down, and the archiving size reasonable.
I'm working on an 800 MHz G4, 10.2.8, 768 MB RAM, with over 5 GB available hard drive space on the OSX partition (way more on the others), so speed and space are not really a problem.
SOOOO, just because you asked (and to satisfy my own curiosity), I have taken one of my files and set it up 3 different ways.
3-panel mural - 80"x88" (I consider this to be a fairly small size).
Vector logo.
Type with drop shadows below, glow above, vignetted outline.
Full bleed image in background.
3 large close-cut images.
Version 1
ID file size 2.2 mb
PS image size 402 mb eps
- close-cut images on layers, feathered & flattened
ID eps size 162.5 mb
Time for ID to make eps - 5 minutes with eps
Version 2
ID file size 5.8 mb
PS Image size 797.7 mb psd file
- psd file with feathered close cut images on layers
ID eps size 329 mb
Time for ID to make eps - 5 minutes
Version 3
ID file size 11.2 mb
PS Images 354.7 mb total (background image plus 3 closecut images imported into ID and feathered)
ID eps size 432 mb
Time for ID to make eps - 27 minutes
You are right jimoblak - I am not fully utilizing InDesign with I build the file & flatten it in PS, but until InDesign can whip up the eps in record time, I will probably continue doing it this way on larger projects.