At the moment, we do this deliberately to preserve debug information. However, once libgcc is moved out of to top level - hopefully along with the gcc-provided include files - then gcc can be a pure host directory, and we won't need to worry about this.
Uhm, we'd still need to have prev-libgcc wouldn't we? I'm not so positive that we can remove the prev-* thing entirely, though it's possible that it can be restricted to the target libraries...
Paolo