It all depends on what your team decides. However, here I take on the question of why I use single-line formatting:
When I need to support CSS, I most often want to modify an existing selector. If the beginning of each line is a new selector, not just a style declaration, this makes it easier to scan the document for the selector I want to find. It also means less scrolling to find what I need.
As soon as I find the selector, I need to edit, good syntax highlighting will make it easier to read the rules for a particular selector, so I do not lose readability, having all my style declarations on one line.
Saying this, I would not say that it helps with file size. I rely on the YUI Compressor to compress my CSS for me automatically, rather than trying to manually maintain an efficiently declared style document.
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