I totally disagree with compressing the binary file. I understand it decompress to memory, but that means it only anther thing which can go wrong and cause problems for emulation. I dont see what all the fuss about the the emulator being hacked, we are well aware who contributed/ made the emulator. If someone is stupid enough to hack it, then they surely deserve to be flamed.
I mean, it isnt as if the file cannot be decompressed, upx has been around for a long time. Not to mention is doesnt take a really smart person to figure out the -d switch.
In all honestly I just think it can cause more problems, then security. Its reversable, and 1 meg file doesnt amount to anything these days.