I really consider this a false dichotomy. It's a limitation of tooling (and ultimately of our plaintext-based mode of programming, in which we always edit the single, canonical form of the source code).
My preferred form really depends on why I'm looking at particular piece of code at a particular moment. I like my code sparse and modular if it eliminates details I don't care about. I love my code dense, tight and inlined, if it lets me fit all details I need on a single screen, or otherwise minimize the amount of scrolling and jumping between files. Depending on my particular goal, the same code can be perfectly readable, or a horrible mess.
In practice, I find most of the code I deal with too sparse, but that's again the function of the work I typically do.
My preferred form really depends on why I'm looking at particular piece of code at a particular moment. I like my code sparse and modular if it eliminates details I don't care about. I love my code dense, tight and inlined, if it lets me fit all details I need on a single screen, or otherwise minimize the amount of scrolling and jumping between files. Depending on my particular goal, the same code can be perfectly readable, or a horrible mess.
In practice, I find most of the code I deal with too sparse, but that's again the function of the work I typically do.