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> luac is really only useful if you're running Lua where there is so
> little space you can't include the compiler.  It does not solve any
> obfuscation or script size problems at all.

Exactly. Those are not part of the goals of luac. The man page says:
	"The main goal in precompiling is faster loading."
It also mentions:
	"protecting source code from accidental user changes,
	 and off-line syntax checking."