I worked on a massive codebase once many years ago (C#/.NET) which had been built by a relatively competent outsourced team. Somewhere along the way some consultant on the UK side of the business had insisted that each function could be no more than 5 lines long. It was horrible to work with - it took so long to find the place you actually needed to make changes, and it seems like they'd just started inventing layer names in order to facilitate it.

So yeah, small functions good, but you can take it to extremes.