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There is actual evidence to back up his original statement, and even to say that nesting increases defects. It's called cyclomatic complexity, and can be tested for quite easily.

http://en.wikipedia.org/wiki/Cyclomatic_complexity

I wrote an article on a similar concept here:

http://www.jasonlotito.com/programming/blocks/

It covers one method I use to reduce the complexity of my functions.




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