Earlier quoted context omitted.
That could be true for other embedded projects as well, but then it's the size of the executable binary that is of concern, not necessarily the size of the source code on your development box.
Exceptions like C++ templates exist (in which a small amount of source can expand to a huge binary), but usually there tends to be a general correlation between the size of the source and the binary. Trying to write as little source code as possible also leads to trying to find the simplest, most concise algorithm to do a particular task, and that also has effects on the binary size.
Algorithms is an interesting case since you have to ask if you are optimizing for size or speed, as an example you can implement a linear search in fewer lines of code than binary search. Does that mean that linear search is a better more optimized choice. It does if you are optimizing for small executable binary size.