No, V8 parses your Javascript source into an AST. From the AST, there are two paths it can take. The first step is the "full-codegen" compiler, which walks the AST directly and emits unoptimized native code:
http://wingolog.org/archives/2011/07/05/v8-a-tale-of-two-com...
If a function is hot, then it gets promoted to V8's optimizing compiler, which is currently Crankshaft but will soon be replaced by Turbofan. This compiles the AST first into a high-level IR, Hydrogen, which is an architecture-independent SSA-like form vaguely reminiscent of LLVM. Then that's lowered into an architecture-dependent IR, Lithium, where register allocation and instruction scheduling is performed.
http://jayconrod.com/posts/54/a-tour-of-v8-crankshaft-the-op...
If you read the bug for this that someone posted up-thread, the AST information is fully available when inlining in Hydrogen, but a patch to remove the character limit tanked one of their benchmarks. Also, they didn't preclude fixing it in Turbofan, only in Crankshaft, and that's largely because Crankshaft is on its way out.
(I've played a little with the internals of V8, but am not an official developer. Also, one of my friends is the Bay Area TL for V8.)