It is a reality. Another point is that piece of code does not mean everything. When it run on an optimised platform, it will give much value. For example, a multi-core algorithm. When it is a service, that can be ensured. Also, the Library and the beneficiary application run on same memory space (normally). So the lib code can cause crashes or can hack privacy. Another thing is your secret-sauce is public now. So it can be copied or reverse engineered.