deadsea - 8:29 pm on May 9, 2012 (gmt 0)
Google has no reason to prefer nicely formatted code on the the websites it crawls. Users never see that code.
Google does like nicely formatted code when the engineers there write it. It makes it easier for future engineers (and cheaper for Google).
Lots of whitespace in your code can inflate the file sizes of your documents, eating up bandwidth and slowing down your site. You can either remove the whitespace from your scripts (maybe as part of the deployment process), filter the whitespace out as the pages are generated, or setup gzip compression on your server so that the impact of the whitespace is minimal (gzip does a great job compressing white space).