Packaging Python code enhances usability, structure, and maintainability by organizing code into namespaces, which are created by placing modules in a folder with an `__init__.py` file. The article uses examples like Karma Bot and a Twitter Archive Stats script to demonstrate the process of refactoring and organizing code into packages, emphasizing the benefits of modularizing code for readability and reuse. It highlights the importance of planning and identifying the main responsibilities of a script before packaging, as well as the positive impact on code quality through refactoring during the process. The article also touches on simplifying import statements by consolidating them within the package's namespace, and suggests exploring tools like cookiecutter for making code distributable, with additional resources recommended for further learning about Python packaging.