well. here is example, we have:
1.little binary(20k)
2.little library(10k)
3.tool like UPX (which pack executable with adding self decrunch data + decrunch header into new exefile)
We pack exe, to 10k. And can't pack library. If, we embedding library to binary, it possible to pack all code. And it will look more compactly.
Next example, it is too many buggest amiga librarys from version to version. For example user have 1.2 version of library (it is work fine with some user programs) and i have 1.3 (it is work for me too, but for some programs from user, it is do not work, becouse problem in new library fixes/codes/etc). I am replace user library, and .. it is suxx. So, it is one more + to embedet library to binary.
ps. of course i am understand that it's not good way. but! i do not have to create big project with this kind of hack, i just want to create some little project.