Max spritesheet size impact?

AFAIK it would be loading into memory on start of layout. Pretty important for people with huge layouts to load, as the "freeze" during loading is not pleasant and often resembles a crashed program.

Oh OK. I am doing a retro style game somewhere in between NES and SNES where the resolution is 256x224, so I would assume the best option is to set the sheet size as small as possible because the time it takes to load isn't going to matter for that but it will actually help RAM a decent amount.

Mm... usually best not to mess with it IMO. If you're getting anywhere near the VRAM limits, by default that means you have a lot to load, which could cause freezing when changing layouts. Sprite sheeting is a good thing.

construct.net/en/forum/construct-3/general-discussion-7/spritesheet-question-123103

I managed to dig up some info after searching for about 2 hours since the search tool of this forum often isn't very useful.

Apparently if an object has sprites on two different sheets then each time it switches between those, it requires more drawing overhead which can impact performance. So if we were working with something like modern mobile game graphics, having small spritesheets would be a terrible idea. But in the case of NES res graphics, looks like using the smallest possible setting is the way to go because I only saw a few out of 1905 different object types in my game that were spread across more than one sheet and the memory savings far outweighs the negligible performance increase.