I would contend that if you're having code readability issues, it'd be better to fix it by sprucing up your whitespace and comments, instead of saying "Well, let's chunk it into more functions" and have method(), which returns method1(), which returns method2(), which returns method3()...
Chunking for the sake of itself doesn't seem like a viable strategy to me.
I agree that that strategy's pretty feeble, but IMO it's still better than e.g. a thousand-line function. If nothing else it forces you to break out the parameters explicitly, instead of just having a thousand lines of intermingled state transitions.
Chunking for the sake of itself doesn't seem like a viable strategy to me.