Suppose we have two examples of programs that do X (whatever X may be). Suppose the first program is slightly longer, but takes less time to produce. I would argue that typically the first program produces more value than the second just by virtue of having existed longer.
Or, suppose we have two programs that do X. The first program is slightly longer, but easily extended to do Y as well as X. The second program does X equally as well as the first, but is not as extensible to also do Y. If Y is a thing that is worth doing (i.e. doing Y produces value), then the first program is better than the first.
One more example: suppose the same program to do X can be written in two different languages, but programmers who know language 1 are easier to find and cost less to employ than those who know language 2. Even if the program is longer in language 1, it's probably better to write the program in language 1 rather than language 2.
My point is that there are so many externalities beyond "a non-obfuscated program that does X" that affect how much value a piece of software is going to create, that length of the program is often not a primary concern.