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 blocks over 3000 coins which haven't split. I find stacks of 500-800 seem to work well.
Right...what I'm trying to determine is if it is just a UI/presentation thing in coin control, or if there is something actually happening on a transaction level.
Does XQN have some sort of code in it that tries to do us a favor by recombining small blocks together? That is what it appears. Seems like the sort of thing a well meaning developer would include if he didn't realize just how important it is to those who stake consistently to have complete control over their coins.
Those who stake consistently and think about these sorts of things are seeking any edge possible. Obviously, all PoS coins have their own unique parameters. By paying attention to these parameters, we seek to stake our coins as efficiently as possible and gain even a small edge over the other stakers. Optimum block size is normally a very important factor to consider when seeking an efficient staking strategy. Anything that takes away our control of the size of our blocks of coins is going to cause an experienced staker to look in your direction like you just ripped a really loud and exceptionally smelly fart.
As there is no cap on time for accumulating coin age, whatever mechanism is coded into XQN that causes blocks of coins to recombine or sweep together is completely unnecessary and counter productive. In the next release, I vote for the kiss (keep it simple stupid!) approach to solving the issue. Just remove whatever code there is that recombines and auto-combines blocks of coins.
Maybe sure all the transactions are like this one.

Nothing fancy, no recombination. A block of coins stakes, the reward is added on and the single block becomes 2. That's it. Simple and easy.