"it can chop up all your functions into tiny functions..."

And now you just played yourself, by creating a morass of tiny functions. Well tested (CRAP says so!) And impossible to understand how they compose together.

AI will happily return the next token and ruin your codebase, if you ask it.

Creating functions that are only used once, in one place, and are pretty small is on of those things I give a harder look at during PR review.