Re: 20 small holes or 1 big hole?
Like Dan says, "it depends." Do you want a show car or a driver? Do you want to be driving it in 6 months or 6 years? Personally, I'm too old and I've built too many cars to spend too much time meticulously grooming something that will seldom be seen. I used to think I'd own a car forever so I'd better make it perfect. Now I realize that's rarely true.
My choice would be to cut along your line and overlap a nice piece of polished stainless or diamond plate aluminum on it using a series of equally-spaced chrome button-head bolts around the perimeter. Easy and purty.
If you insist on butt welding then I'd go for one big patch on each side - the welding distance around all those little circles really adds up, so you may end up with less total weld that way.
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