I think one valid reason for using a succession of perhaps three short, single-sentence paragraphs is when writing in a more rhetorical style.

The carriage return has (or should have) the oratorial effect of 'pause a beat, allow message to make an impression, then proceed' between each successive blow of the hammer, driving the nail into the wood.

If you string them together in one paragraph, you may lose some of that rhetorical impact in the mind of the reader (and perhaps in the pacing of the text-to-speech engine, though I've never actually used that).

That said, both my 'hammering nail into wood' metaphor and the overuse of one-shot paras suggest an underestimation of the reader's intellect, literacy and attention span.

Which is probably not a good look either.