To answer the title, yes it's bad as it affects the install time and can play havoc with R's byte compilation.
However, your function is nowhere near the size that would cause problems. The only instances where I have found the size of a function's source code to be problematic have been when a very large object is defined explicitly in the function body, rather than saved in the data/ or R/sysdata.dta parts of the package.
For example, if I wanted a function identical2mtcars(x) that returned TRUE if x is the mtcars dataset. The right way would be to create mtcars outside the package, then save it to R/sysdata.dta. Then have:
identical2mtcars <- function(x) identical(x, mtcars)
The wrong way would be to write:
identical2mtcars <- function(x) identical(x,
structure(list(mpg = c(21, 21, 22.8, 21.4, 18.7, 18.1, 14.3,
24.4, 22.8, 19.2, 17.8, 16.4, 17.3, 15.2, 10.4, 10.4, 14.7, 32.4,
30.4, 33.9, 21.5, 15.5, 15.2, 13.3, 19.2, 27.3, 26, 30.4, 15.8,
19.7, 15, 21.4), cyl = c(6, 6, 4, 6, 8, 6, 8, 4, 4, 6, 6, 8,
8, 8, 8, 8, 8, 4, 4, 4, 4, 8, 8, 8, 8, 4, 4, 4, 8, 6, 8, 4),
disp = c(160, 160, 108, 258, 360, 225, 360, 146.7, 140.8,
167.6, 167.6, 275.8, 275.8, 275.8, 472, 460, 440, 78.7, 75.7,
71.1, 120.1, 318, 304, 350, 400, 79, 120.3, 95.1, 351, 145,
301, 121), hp = c(110, 110, 93, 110, 175, 105, 245, 62, 95,
123, 123, 180, 180, 180, 205, 215, 230, 66, 52, 65, 97, 150,
150, 245, 175, 66, 91, 113, 264, 175, 335, 109), drat = c(3.9,
3.9, 3.85, 3.08, 3.15, 2.76, 3.21, 3.69, 3.92, 3.92, 3.92,
3.07, 3.07, 3.07, 2.93, 3, 3.23, 4.08, 4.93, 4.22, 3.7, 2.76,
3.15, 3.73, 3.08, 4.08, 4.43, 3.77, 4.22, 3.62, 3.54, 4.11
), wt = c(2.62, 2.875, 2.32, 3.215, 3.44, 3.46, 3.57, 3.19,
3.15, 3.44, 3.44, 4.07, 3.73, 3.78, 5.25, 5.424, 5.345, 2.2,
1.615, 1.835, 2.465, 3.52, 3.435, 3.84, 3.845, 1.935, 2.14,
1.513, 3.17, 2.77, 3.57, 2.78), qsec = c(16.46, 17.02, 18.61,
19.44, 17.02, 20.22, 15.84, 20, 22.9, 18.3, 18.9, 17.4, 17.6,
18, 17.98, 17.82, 17.42, 19.47, 18.52, 19.9, 20.01, 16.87,
17.3, 15.41, 17.05, 18.9, 16.7, 16.9, 14.5, 15.5, 14.6, 18.6
), vs = c(0, 0, 1, 1, 0, 1, 0, 1, 1, 1, 1, 0, 0, 0, 0, 0,
0, 1, 1, 1, 1, 0, 0, 0, 0, 1, 0, 1, 0, 0, 0, 1), am = c(1,
1, 1, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 0, 1, 1, 1,
0, 0, 0, 0, 0, 1, 1, 1, 1, 1, 1, 1), gear = c(4, 4, 4, 3,
3, 3, 3, 4, 4, 4, 4, 3, 3, 3, 3, 3, 3, 4, 4, 4, 3, 3, 3,
3, 3, 4, 5, 5, 5, 5, 5, 4), carb = c(4, 4, 1, 1, 2, 1, 4,
2, 2, 4, 4, 3, 3, 3, 4, 4, 4, 1, 2, 1, 1, 2, 2, 4, 2, 1,
2, 2, 4, 6, 8, 2)), row.names = c("Mazda RX4", "Mazda RX4 Wag",
"Datsun 710", "Hornet 4 Drive", "Hornet Sportabout", "Valiant",
"Duster 360", "Merc 240D", "Merc 230", "Merc 280", "Merc 280C",
"Merc 450SE", "Merc 450SL", "Merc 450SLC", "Cadillac Fleetwood",
"Lincoln Continental", "Chrysler Imperial", "Fiat 128", "Honda Civic",
"Toyota Corolla", "Toyota Corona", "Dodge Challenger", "AMC Javelin",
"Camaro Z28", "Pontiac Firebird", "Fiat X1-9", "Porsche 914-2",
"Lotus Europa", "Ford Pantera L", "Ferrari Dino", "Maserati Bora",
"Volvo 142E"), class = "data.frame"))
(Obviously the problems arise when the object so created is enormous.)