I don’t think that “inline” is a valid keyword in GLSL. (It is reserved for future use but it doesn’t have any meaning in current versions of GLSL; see the specifications of GLSL for OpenGL ES 2.0 at http://www.khronos.org/registry/gles/ .) I guess Unity just removes it as a “service” to the programmer such that the GLSL compiler doesn’t complain about a syntax error.
In practice, I assume that most GLSL compilers (i.e. OpenGL drivers) inline most (if not all) functions. (The “compiled” GLSL code is actually the code that is sent by Unity to the GLSL compiler.)