To clarify in my case, the need for source files were for adjustment to fit a "wrapper" (not a wrapper in the sense most of us are used to) app - the licence was a custom exclusive.
Maybe a lot of C2 user (hobbyist or quickmoney people) submitted LQ games to them and gives them an impression of C2 games are worthless? That's dangerous, given that C2 is the easiest tool to make games, it's logical to think that a lot of LQ games are shoved into the publishers face.
The publishers I work with never have a problem with quality (which isn't really engine dependent as the HTML5 market is overwhelmingly cosmetics driven) but rather dev usability; they want a source file that they can open in something like Notepad++.
I'm literally conversing with a dev at the moment about this issue, and as I'm code-ignorant, I'm clinging to the hope that an unminified c2.js is something that can be worked with, or I'm going to have to suggest they get busy with the C2 SDK and make a plug-in that can do what they want in-engine.