I think you have to have a good balance here. I've found following a huge method or function rather complicated, but at the same time I think I find trying to track down complicated abstractions even more complicated. If you've ever stared at a new codebase trying to track down a bug, you know the joy of grepping and following chains of methods trying to get to the part that actually matters. This may not make it technically less readable but I'd say it makes it significantly less, uh, understandable?

Really, it boils down to how easy the code is to understand and maintain. Group code into logical groups. Don't break it up if the only benefit is following some arbitrary rule stating your functions should be no more than x lines long.