I use the following macro to "pull" the next line onto the end of the current line, compressing whitespace.
(defun pull-next-line()
(interactive)
(move-end-of-line 1)
(kill-line)
(just-one-space))
This is exactly the opposite of @jrockway's move-line-up and of delete-indentation, which I find more natural. The just-one-space command in the macro is exactly @Mike's M-SPACE.
I bind pull-next-line to M-J (in analogy with Vim's J, for "join", command) using the following in my .emacs.
(global-set-key (kbd "M-J") 'pull-next-line)
Example. Calling pull-next-line on the first line of
function_call(
'first_arg',
'second')
yields
function_call( 'first_arg',
'second')
Calling it a second time yields
function_call( 'first_arg', 'second')