John Carmack discusses the benefits of inlining code, citing his experience with the flight control code for the Armadillo rockets, where inlining subroutines led to cleaner and more efficient code. He argues that inlining can help avoid bugs and improve code readability, but notes that it may not be suitable for all situations. Carmack also touches on the importance of understanding the problem domain and avoiding unnecessary abstractions. He shares his personal experience of applying this approach to his code at Id and finding it beneficial.