[javascript] How does inline Javascript (in HTML) work?

The best way to answer your question is to see it in action.

<a id="test" onclick="alert('test')"> test </a> ?

In the js

var test = document.getElementById('test');
console.log( test.onclick ); 

As you see in the console, if you're using chrome it prints an anonymous function with the event object passed in, although it's a little different in IE.

function onclick(event) {
   alert('test')
}

I agree with some of your points about inline event handlers. Yes they are easy to write, but i don't agree with your point about having to change code in multiple places, if you structure your code well, you shouldn't need to do this.