The way I read Linus' message, he is advocating merging the buffers in *kernel* space ("the stuff that actually makes it to dmesg" is still in the kernel), but at the same time sending an unbuffered copy to the console. Giving us the best of both worlds, at the small cost of the screen output and dmesg output being slightly different in case multiple CPUs interleave their messages (the screen would have them interleaved, the kernel log would have them separated correctly).
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