I can think of a couple reasons.
1. People love decking out their favorite Fire Emblem characters. This includes making a +10 merge of them to completely max out their potential.
2. Merges carry more arena weight, and will possibly net you more rewards each week. Now that IS has tossed Sacred Coins and Refining Stones into the weekly arena rewards, I know I'll start making high-level merges.
GHB units or Tempest Trial reward units might not see whale-tier play due to being low-merged, but that doesn't mean they aren't powerful or useful. In fact, Black Knight is in limited quantity, but remains one of the most powerful armor units in the game.
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