What your greybeard might have been talking about was to do with interpreted languages where the interpreter had to parse through the code in some situations when performing a jump/goto. This meant that the more characters there were between the jump origin and destination, the slower execution was. I remember this being a factor in early 8-bit BASIC implementations, leading to a desire to make programs as terse as possible to achieve fast execution. Later implementations tokenized the source before execution, avoiding that problem.
He started these things with punched cards, and worked at the prominent companies of the time (like IBM and HP), and seen tons of bizarre computer architectures on the way like registerless processors.
He might be recalling a very specific example, or about a very slow system, but I remember the conversation well.
That thing has been probably sorted out by the mid of 90s, but I was just starting programming back then.
Oh, I'm a proud member of "descriptive variable name mafia", but not affiliated with the Java branch. They're a different breed. On the other hand, being written real math in C++ (differential equations), having three letter variable names for everything is equally painful. :)
Never again.
My preferred line-width for code would be 80 characters, not including indentation for the line, with a maximum of 120 characters including indentation.
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While user facing programs are not faster by any means, computers got faster in some aspects after all.