The 17 LOC version is still relatively readable for someone fluent in Red/Rebol, despite the tight vertical packing. I could have claimed 14 LOC using the minified version [1], but in such case, I couldn't have called it "readable" at all. ;-)
I think the manually minified version was done for fun. A lot of programmers like to play this game. For me, the tiny version is fun to see, but not to read, so I'm glad he made the regular version available as well.
You make a good point, though, in that examples benefit from being readable.
[1] https://gist.github.com/dockimbel/091cc787b366a3d88972b8cb9e...