I think moral-hazard arguments also deserve a bit of thought.
I was thinking moral hazard too, but in the other direction. The higher the per-method overhead, the more likely people are to write poorly factored methods and to duplicate code, because declaring another method feels too heavy.
Just as `var` lowers the barrier to pulling a subexpression into a variable with a name, increasing readability, lowering the bar to declaring a method does the same.