An SVN would mean making the code even more readable. Carbonite's developers would encrypt or byte-code the entire project if they were permitted to do so. They aren't but that doesn't mean they want to offer there code up on a plate for the mod community to pick over and/or plagerise.
The security holes thing is kinda silly tbh. The code is readable right now. Besides, if you don't trust a mod then simply don't use it. Personally, I've found no reason to not trust Carbonite either now or in the past. The moment that trust is broken is the moment I stop using the mod. Ironically, in some way's the commercial nature of previous versions provided some reassurance. Carbon Based Creations business model was to make sales, which would've been pretty hard to sustain if they went about exploiting their customers.
Sure 3rd party debugging is a noble and worthy service to offer, but so far Carbonite has managed admirably without it. Any 3rd party code submissions would limit Carbon Based Creations, LLC's ability to claim sole copyright over their work. So the only value in the debugging argument is really to point at specific lines of code and say "this needs changing", which is something you could do right now if you needed to.
Over on the General Carbonite forums Haavok has already stated:
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Originally Posted by Haavok
Carbonite was released in this form strictly to comply with the new UI policy; it was not released to be some kind of coding resource for other addon developers.
If an addon developer would like to hook into Carbonite in some way, we will do our best to provide them with an API/information to do so (as we have done in the past).
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Frankly I agree with Haavok. It's not like Carbonite's code has been made readable because the Carbon Based Creations have freely chosen to do so. The change was forced upon them by Blizzard.