When I added support for the 2x2 pixel playback in mpegplayer (it used to be 16x16) I noticed that the pixels which will be cut from the right and lower 16x16 blocks (if the resolution is not 16x16), were filled by mencoder by mirroring the pixels from the edge of the image. This avoids some sharp edges (compared to just leaving the pixels black) and should helps to improve the bitrate a bit I think. So maybe the difference isn't very big. I personally just use the 2x2 resolutions.