>  Bo one question, out of curiosity, do you know of any other program that does
>  what you are proposing (working with external files)?

No. :-)

The embedding feature is unique in its bunble/unbundle reversibility.
In the word/ooffice world, embedded objects are embedded, and there
are limited options to edit them. In the latex world, all files are
external. The design of our embedding feature tries to please users in
both worlds. One can work completely in one style, or in another, and
the conversion between them will not loss any information.

Because of this uniqueness, I do not know any program that tries to
embed external files and unbundle them to another file system.

Note that, if we disallow embedding of such files, an embed file may
fail to compile on another system. My goal was to allow complete
bundling of external files and the status quo is that everyone can
make such a file easily, which can be viewed and compiled on another
system, but unbundling can be troublesome.

Cheers,
Bo

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