While several approaches have been proposed in literature for improving the performance of wireless packet data networks, a recent class of approaches has focused on improving the underlying wireless network model itself. Several of such approaches have shown that using peer-to-peer communication, a mode of communication used typically in ad-hoc wireless networks, can result in performance improvement in terms of both throughput and energy consumption. However, the true impact of using the ad-hoc network model in wireless packet data networks has neither been comprehensively studied, nor characterized. In this paper, we investigate the benefits of using an ad-hoc network model in cellular wireless packet data networks. We find that while the ad-hoc network model has significantly better spatial reuse characteristics, the improved spatial reuse does not translate into better throughput performance. Furthermore, although considerable improvement is seen in energy consumption performance...