File size will be drastically reduced regardless:
Werewolf_Idle.md5anim 28KB vs Werewolf_Idle.g3d 1,218KB
Werewolf_Move.md5anim 41KB vs Werewolf_Move.g3d 1,610KB
Werewolf_Attack.md5anim 24KB vs Werewolf_Attack.g3d 826KB
Werewolf_Death.md5anim 27KB vs Werewolf_Death.g3d 1,218KB
Total: 589KB vs 4,872KB
As you can see, there is a huge file size difference and also similar meshes can share md5anims too so if you keep your skeletons under a nice format you may not have to animate as much and can save a few KBs, not that is matters that much, what with how much you save in comparison to G3D. Overall it's ~8x smaller with the bonus of animation sharing which could save even more space with similar models. With my mod I'm struggling to handle to factions, with md5 I should be able to handle 8 no problem and I'm only going for 5.