This work explores the relationship between code-rate selection and queueing performance for digital communication over erasure channels with memory. The properties of the channel, which are defined at the bit level, are employed to study the behavior of the queue at the packet level. The resulting Markov structure enables the application of established analysis tools and provides new insight into system design for delay-sensitive traffic and short block lengths. In particular, this methodology can be employed to study the natural tradeoff between error protection and packet information content. Finally, this work offers a novel perspective on soft routing over small constellation networks and cooperative structures for mixed traffic.