Could you guys provide me with a couple of example transactions where this is occurring, a couple links to the block explorer? I guess I'm getting caught up semantically with the terminology, but when I think of blocks I'm thinking of....well, blocks in the blockchain. When you are talking about splitting and auto-recombining of blocks, I think you mean that your UTXO's (unspent tx outputs) are getting combined in the stake transaction, but from quickly clicking through a few blocks in the block explorer I haven't been able to track down a live example of this happening.
I'd like to see it in the block explorer...
What they mean is that the individual stacks of coins in their wallets are recombining.
I'd think splitting and recombining of blocks will happen more frequently in the next little while as the wallet tries to figure out the optimal size per stack to stake efficiently.
I can say that I have a few stacks over 3000 coins which haven't split. I find stacks of 500-800 work best.