assuming the texture, vertex, and shader data are already on the graphics card, you don't need to send much data to the card. there's a few bytes to identify the data, and presumably a 4x4 matrix, and some assorted other parameters.
so where is all of the overhead coming from? do the operations require a handshake of some sort with the gpu?
why is sending a single mesh containing a bunch of small models, calculated on the CPU, often faster than sending the vertex id and transformation matrices? (the second option looks like there should be less data sent, unless the models are smaller than a 4x4 matrix)