Firstly, you sound like 128 tiles is a tiny bit of tiles. You can do really amazing things with 128 unique tiles on a single map. You can also opt to blend these textures using alpha textures to create thousands of unique tiles. Per map this is plenty, take a look at some good old games. They do a very good job at hiding the grid and making things look really good with only a quarter of unique tiles.
On the technical site, the amount of textures a graphics card could store is limited and with to many textures you run into the problem where the GFX need to dispose of textures taking extra time obviously. If you declare one big spritesheet for a single area you are a lot less likely to run into problems. Just load a new spritesheet for another area if needed.
I am not sure about XNA but i strongly believe it, like many engines, stores it's textures as powers of two. So if you do not have these constraints on your textures the size will be rounded up. This is another big reason to create sheets.
My personal experience is that having a spritesheet with 16 textures vs 16 separate textures can improve the performance very much. I can zoom much further out on a tilemap drawing 1000's of sprites with a spritesheet. Since you are talking about tile size of about 32x32 which draw roughly 2000 sprites on a fulle HD screen i really sugest using sheets, or even two sheets if you really need the extra tiles. Do not worry about the size either, a 4048x4048 is a bit over 10MB in simple dds (DXT1) format without alpha and every texture gets converted to dds with xna. Even with two 4048x4048 sheets there is plenty of room left to draw other things.
-edit-
Reading your comment I understand you want to free draw big textures for the background, this is no problem at all. Like tiles you have to know what you want to draw to the screen. Say you pick the 4048x4048 size, at most you have to draw 4 of these when you stand in the corner of one. You could detect when you are close to a edge and load one when needed. I have no idea what it does to your FPS when loading a 10MB texture but you could always use a separate thread. Neither do I have an idea what it does to the cpu if you draw 4 4048x4048 textures to the screen every frame, but this is easily tested. 50MB of textures sounds a lot to me but I usually work with a single 1028x1028 tilesheet at max for a complete map. You can already get pretty neat results with 256x256 if one uses his space correctly. Check on http://wayofthepixel.net/ what people can do with little colors and space.
Anyway, since 64MB cards are not uncommon you are already close to the max so I suggest using 1024x1024 textures. These will surely load faster and like 4048x4048 you only need 4 of the smaller ones at max so this reduces things a lot. Of course you can draw on a larger canvas and cut it up in pieces afterwards. A 1024x1024 texture saved in DXT1 format is about 600kb this means you could draw plenty without effort since HD resolution just requires 4 of these at any time to be drawn.