I really recommend not using automotive bondo. IIRC, it can absorb water and really isn't suited for repairs on a boat. When doing structural repairs, you're generally best off using epoxy, as it has the strongest secondary (adhesive) bonding characteristics of the three resin types—better than polyester or vinylester.
As for when tapering out fiberglass repair, a 12:1 taper should be fine for most work. I prefer to start with the largest patch and work up to progressively smaller ones. The reasoning for this is as you sand the repaired area, having the largest patch down first, means that the sanding will remove or damage only the shorter fibers and smaller patches—having the long contiguous glass fibers adds more strength to the repair.