Yes, but they already stopped to obfuscate the code, what is left is just the visible code, even if hard to read there is no terms to make sure the code is easily readable, only visible -and it is. :P
But from a programmer point of view, it's good to keep the code nicely formatted and separated into functions and modules, it's good to be organized.
Just an example, this is not obfuscated code:
local a,b,c,d,e,f,g,h,i,j,k,l,m,n={},1,5,2,{[2]=3},23,4,5,1,2,{[9]=0},{}
f,g,m,n=g*2-c*e*9,g*g*c*e+12+3+i,f+b+c+b*a,a+b-c*d*e*f*g
print(f,g,m,n)
I just used hard to read variables and put stuff in a really weird way, it's just hard to interpret for us.
This on the other hand is obfuscated code:
local z='<lots of weird data>'
-- some decode function that decodes z
RunScript(z)
Now imagine that the new z is again yet another long weird string, that includes it's own decode function and run's it's new code again, do this 8 times until you get the real source. It's recursive, it's impossible to read, this is obfuscation at it's finest.
But I agree, you could perhaps say Carbonite is obfuscated but considering they already removed the whole encryption part I think they are allowed to have their code weirdly written... though doesn't this collide with WoWInterface rules of coding? Like you shouldn't have weird and hidden code, e.g. it's hard to read, I mean if I had made an addon like my first example I'm sure they would object putting it up. :P