What is wrong with using inline functions?

It worth pointing out that the inline keyword is actually just a hint to the compiler. The compiler may ignore the inline and simply generate code for the function someplace.

The main drawback to inline functions is that it can increase the size of your executable (depending on the number of instantiations). This can be a problem on some platforms (eg. embedded systems), especially if the function itself is recursive.

I'd also recommend making inline'd functions very small - The speed benefits of inline functions tend to diminish as the function grows in size. At some point the overhead of the function call becomes small compared to the execution of the function body, and the benefit is lost.

It could increase the size of the executable, and I don't think compilers will always actually make them inline even though you used the inline keyword. (Or is it the other way around, like what Vaibhav said?...)

I think it's usually OK if the function has only 1 or 2 statements.

Edit: Here's what the linux CodingStyle document says about it:

Chapter 15: The inline disease

There appears to be a common misperception that gcc has a magic "make me faster" speedup option called "inline". While the use of inlines can be appropriate (for example as a means of replacing macros, see Chapter 12), it very often is not. Abundant use of the inline keyword leads to a much bigger kernel, which in turn slows the system as a whole down, due to a bigger icache footprint for the CPU and simply because there is less memory available for the pagecache. Just think about it; a pagecache miss causes a disk seek, which easily takes 5 miliseconds. There are a LOT of cpu cycles that can go into these 5 miliseconds.

A reasonable rule of thumb is to not put inline at functions that have more than 3 lines of code in them. An exception to this rule are the cases where a parameter is known to be a compiletime constant, and as a result of this constantness you know the compiler will be able to optimize most of your function away at compile time. For a good example of this later case, see the kmalloc() inline function.

Often people argue that adding inline to functions that are static and used only once is always a win since there is no space tradeoff. While this is technically correct, gcc is capable of inlining these automatically without help, and the maintenance issue of removing the inline when a second user appears outweighs the potential value of the hint that tells gcc to do something it would have done anyway.