I used it with a rather large PG file and it did rather well for the most part. It still missed converting many sections of block text. While it would not combine text blocks that had indents as the first few characters, the ones I mention were flush left without indentation.
One of the first features you need to add is an option to change the name of the output file rather than assume that we all want it put back on top of the original file. (As you said, this is your setting.)