This seems like it might be a workaround, but it's a bit cumbersome: http://excel.tips.net/Pages/T003207_Automatic_Row_Height_For_Merged_Cells_with_Text_Wrap.html
Why is it impractical not to have merged cells? If it's for formatting reasons, you could try turning the gridlines off, then creating some custom borders.
@mattty started
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This seems like it might be a workaround, but it's a bit cumbersome:
http://excel.tips.net/Pages/T003207_Automatic_Row_Height_For_Merged_Cells_with_Text_Wrap.html
Why is it impractical not to have merged cells? If it's for formatting reasons, you could try turning the gridlines off, then creating some custom borders.