Mashing things up without line breaks isn't a functional vs. imperative thing [1]. Its a density vs. negative space thing. There's a quite a bit of research in many contexts indicating that effective use if negative space generally improves readability of most things for most readers, so while I know Whitney and his disciples like to say that J is "more readable" because of its density, I don't think that's generally the case for most readers.
[1] idiomatic Haskell is definitely functional, but does not eschew line breaks; mashing C programs into cryptic single-line monstrosities doesn't make it any less imperative, it just makes it unreadable.