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Encoded data size is especially important for Client-Server communications, and less important (within reason) for Server-to-Server ones and for locally-stored format.

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On the other hand, due to being optimized for CPU operation, Flatbuffers are NOT optimized space-wise; even compared to not-so-optimal-space-wise Google Protocol Buffers, Flatbuffers can lose additional 1.5x in size

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I am not saying that this architecture is the only viable one, but it does work for TCP for sure (and performs reasonably well too)

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The whole task of optimizing performance beyond, say, 20-50K packets/second per box tends to be Quite Elaborated, and involves quite a few things which are platform- and hardware-dependent.

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TCP is a byte stream, the whole byte stream and nothing but the byte stream

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if all packets reach Client, there isn’t that much difference between TCP and UDP

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Yes, you DO need to encrypt your UDP traffic. And no, using UDP is NOT a valid excuse to skip encryption

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Personally, I prefer to think of it as of insurance - when I'm paying my premiums in hope that my money will go to waste.