FWIW, putting tests in the image sounds fine to me, but I also don't
care much. The 300k update is a one-shot deal, and anyway, people who
use beta images just have to be ready to deal with this kind of thing. 
They can download an updated image if they prefer, or wait for the next
stable release.

On the flip side, it makes perfect sense to distribute tests for a blop
of code in whatever fashion the blop of code is already distributed. 
For packages on SM, put the tests on SM.  For non-packages maintained
via the update stream, maintain the tests in the update stream, too. 

And Doug said it too lightly.  Putting the tests in the image makes it
*easier* to split out new packages.  Right now, you have to get Marcus
to weed out part of the mega test package and make it part of the test
package for your newly created package, but if tests are in the image
you can split them the same way you split everything else.

So in short, treat tests just like the code they apply to, and we will
seem to do very well on any line of argument you name.

But I don't care strongly.  It's just a quick thought.


-Lex