In my line of work, obfuscated javascipt = malware. If someone wants to hide what they're doing, then it's almost always something bad. Also, many antivirus packages can identify and block obfuscated javascript.. precisely because the bad guys use it so often. :eek:
YUI Compressor does a good job.
There is also a tool from Rhino.
Disagree completely about malicious intent.
Compressing and obfuscating javascript means less bandwidth, and less chance of people stealing your code.
Hence the reason most webapp sites use it - gmail etc etc
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