If for example you have some pages that are used for 64b objects, and you merge them to be backed by the same physical page, and then the user allocates more 64b objects such that a 2nd physical page of 64b objects must be allocated, they're now using 3 virtual pages for their 2 physical pages worth of 64b objects. With an allocator that does not point multiple virtual pages at the same physical page, they could only be using 2 virtual pages for their 64b objects.
So more TLB entries are not required immediately when pages are merged, they are required later when more objects are allocated. It's certainly possible that I've misunderstood and the pages are actually un-merged by Mesh at this point so that new allocations can be served from the existing 2 half-full virtual pages (which are now backed by 2 separate half-full physical pages).