This does exactly what it says on the tin. All this strange talk of "it makes your code unreadable" seems to miss the point of what optimisation actually is. I wonder if the same complaints are made about compilers: "It's made my source code unreadable". ;-)
Think of this as a compiler – you keep your source code for editing but distribute the "compiled" (in this case optimised) version. Anyone wanting to see heavily-optimised code should take a look at Erik Bosrup's excellent tooltip library and compare the "development" version of overtlib.js ("source code") with the "production" (optimised) version overlib_mini.js, which is all but unreadable by humans.
This is good software - kudos to the author!