One argument for comparing code size is the old rule of thumb that people tend to have the same line-per-hour productivity regardless of language. This seemed to hold out as we compared Erlang-based projects with projects using...
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By saying that Haskell programs could be shrunk 10x smaller, he's implying that there is still alot of redundancy in the code of Haskell projects. Is Haskell really so bad that it has a significantly large amount of room for...
I didn't write the original, and in any case the program is a straightforward shell - hardly any room for "insight" since all it does is to take commands typed by the user and dispatch them to the underlying library.
I wouldn't be surprised by shrinkage, but rewriting a system in the same language would probably also shrink it due to gained design insight; that's not apples-to-apples. 'sides, functional programming languages were around...