In PL/SQL Language Reference 11gR2 the following reason was provided: “Wrapping is the process of hiding PL/SQL source code. Wrapping helps to protect your source code by making it more difficult for others to view it.”

In PL/SQL Language Reference 23ai there is no such reason provided anymore. Instead the following note is provided: “Note:Wrapping text is low-assurance security. For high-assurance security, use Oracle Database Vault, described in Oracle Database Vault Administrator’s Guide.”

I see the following reasons for still using wrapped code:

• Unwrapping might violate a license agreement. It’s pretty clear that unwrapping would go against the Oracle Free Use Terms and Conditions (FUTC), which contains the following passage “You do not cause or permit reverse engineering, disassembly or decompilation of the Programs (except as allowed by law) by You nor allow an associated party to do so.”
• It’s a security layer. You can’t see the content by default, no matter what database access rights you have. Sure, it’s easy to pass, but the person who sees the wrapped code knows right away that it’s not meant to be visible. And making it visible might violate some license agreements.

So, I see it more like a legal or compliance feature. ;-)