I guess either, what I am trying to say is that I use variables when it makes sense to, and if that means code is easier to read then I would opt for it.
I don't work on systems with low memory requirements so declaring variables isn't any issue. I just use them when I need to and don't specifically try to go out of my way to write code that avoids using them.
On the same note I don't use them when there is no need, for example to hold the result of a call that I then return immediately.
As one of the posts above describes, it's context specific.