> I understand that gcc -On happens before generating assembly code (.s), is 
> it correct?

Yes.

> But some optimization, such as inlining, may require cross
> compilation-unit (i.e, cross file) information.  It seems that these
> kind of optization is better to be handled at link time (thus, cross
> compilation units info is available).

Yes, you're right; and this is a current subject of discussion for the
way forward for GCC.  If you check the gcc@ mailing list archives
since December or so, you can see the discussion about "LTO" (link
time optimisation).

Ben

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