I heavily use this pattern. It is very helpful to quickly navigate to certain elements. It improves readability.

You can break the component into smaller components, but sometimes it not possible or doesnt make sense. Eg. <Header> component renders <Logo>, <Menu>, <Search>, <UserIcon>, <SettingsMenu>. There components cant be further broken down. So Header component has to render all these components. And if these components take 3 props each then already return statement will span over 15 lines. Instead I put these into renderLogo(), renderMenu(), renderSearch()... It becomes so easy to read and navigate.

I highly recommend others to use this pattern as well.