I've heard Guido mention that
Donald Knuth made an early suggestion that future programming languages would use indentation as a structuring mechanism. I decided to dig into that history a little bit today. Knuth quotes
D. V. Schorre who writes
Since the summer of 1960, I have been writing programs in outline form, using conventions of indentation to indicate the flow of control.
Knuth quoted this in the context of his long paper "Structured Program with go to Statements" (p. 295) where he wrote:
It seems clear that languages somewhat different from those in existence today would enhance the preparation of structured programs. We will perhaps eventually be writing only small modules which are identified by name as they are used to build larger ones, so that devices like indentation, rather than delimiters, might become feasible for expressing local structure in the source language.
Knuth also mentions
Peter Landin's ISWIM family of languages. In "The Next 700 Programming Languages," Landin discusses four levels of abstraction in programming languages--physical, logical, abstract, and applicative expressions. The physical and logical languages involve syntactic issues like grammatical rules for grouping textual elements. Landin also mentions that ALGOL "sought to avoid any commitment to any particular sets of characters or type faces."
Landin's preferred representation for ISWIM used indentation. The paper has a section that lists differences between ISWIM and LISP, including the "textual appearance of ISWIM."
(c) Indentation, used to indicate program structure. A physical ISWIM can be defined in terms of an unspecified parameter: a subset of phrase categories, instances of which are restricted in layout by the following rule called "the offside rule." The southeast quadrant that just contains the phrase's first symbol must contain the entire expression, except possibly for bracketed subsegments.... It is based on vertical alignment, not character width, and hence is equally appropriate in handwritten, typset or typed texts.
In the next sentence, he observes that indentation is not mandatory. It can be freely mixed with more conventional punctuation.
The discussion, presumably from the conference, starts with a discussion of indentation. Peter Naur raises an immediate objection, oen that is raised today about Python programs.
Regarding indentation, in many ways I am in sympathy with this, but I believe that if it came about that this notation were used for very wide communcation and also publication, you would regret it because of this kind of rearrangement of manuscripts done in printing.
Robert Floyd also objected:
It works on the micro-scale--that is, one page is all right--when dealing with an extensive program, turning from one page to the next there is no obvious way of indicating how far the indentation stretches because there is no printing at all to indicate how far you have indented.
References
Donald E. Knuth
Structured Programming with go to StatementsACM Computing Surveysm, Vol. 6, No. 6, December 1974
pp. 261-301
D.V. Schorre
Improved organization for procedural languages
Technical memo TM 3086/002/00, Systems Development Corp., Santa Monica, Ca.
Sept. 8, 1966
(I haven't seen the original. This citation is just a copy of Knuth's.)
P. J. Landin
The Next 700 Programming LanguagesCommunications of the ACM, Vol. 9, No. 3, March 1966
pages 157-166
The paper was presented at the ACM Programming Languages and Pragmatics Conference, Aug. 8-12, 1965 in San Dimas, Ca. The printed version of paper includes some discussion, presumably from that conference.