That being said, John Carmack makes the very important point that this decision (whether to inline or not) should be made case-by-case. Someone in these comments used the flow of a novel as an example and I think it's actually the ideal way to describe the balance you want to strike with code as well. Using "The Tortoise and the Hare" as an example:
Inlined too much: "The race began. The Tortoise took a step. The Hare took a step. The Hare took another step. The Hare took another step. The Hare took another step..."
Inlined too little: "The race began. The Tortoise won!"
It's interesting because some authors actually make mistakes in this realm - overdoing it on details, or leaving the reader confused without enough context. Thinking about the flow of code like the flow of a novel is probably a good idea - both should delicately balance complexity with readability. The best examples of both often describe complex and nuanced concepts while remaining surprisingly straightforward.
If you think this example is contrived and it's always obvious where to abstract and where to inline, it's likely you're over-abstracting. The question of "where to cut" varies greatly from one bit of code to the next and often needs some thought to get right. John's list under "To sum up" here is a great set of guidelines to answer that question.