I think that putting it in the body actually reduces the amount of code and makes it more readable. Compare something like this (ignoring naming, formatting, made up language, etc. I want to show the structure only):
fin=open(fin_name)
fout=open(fout_name)
...
catch IOError e
if e.call == 'open'
if e.filename == fin_name
log_error "cannot open input ..."
elif e.filename == fout_name
log_error "cannot open output ..."
else
log_error "cannot open file, but filename unknown"
elif e.call == .....
.....
to something like this:
try
fin = open(fin_name)
catch IOError
log_error "can't open input ...."
return
try
fout = open(fout_name)
catch IOError
fin.close()
log_error "can't open output ...."
return
Both are ugly, but I really wouldn't like to be the person trying to match up the error handling from the first example to the exact places in the function body. I'm not even sure what would this look like if the exception was coming from somewhere deeper in the function. open() is easy because we know how it fails. More complex call chains would be a challenge to even match up to the place they happened.