At 10.0, the Map Algebra merge function was abolished in favor of Mosaic and Mosaic To New Raster.
Mosaic and the Mosaic To New Raster model tool are very functional -- but these functions are not available inside the map algebra syntax for efficient use with the Raster Calculator and Python.
Funny that Mosaic Dataset functions support this - but not arcpy map algebra.
The two workarounds I know of are 1) use Con and IsNull to grab the first non-NoData cell or 2) use SOMA or MOMA.
Please bring it back as a tool (maybe something like Merge Rasters in the Local toolset?)
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