Rafe Colburn explains why Algol-like languages are far superior to Perl for working on large scale, multi-programmer, long-term projects.
My feeling is that it's unfair to consider a 135-line script like Blosxom and use that as an example of things that would be bad for larger projects. You can get away with a lot in a short script and I consider that one of the strengths of Perl. Some of the Blosxom code is a bit more compact than I'd write but that isn't the point, you'd not get much done in 135 lines of Java.
I also find the one line of Perl a lot easier to understand than the 15 lines of Java. I think it is a lot easier to maintain shorter programs even if the code is more complex (though there is an upper limit to how complex it can be before this isn't the case). I would definitely have put wrapped the code in a function if I was going to use it more than once.