> The MySQL server can easily be embedded in applications by directly
> using the MySQL server library. Used in this form, MySQL doesn't
> have to be installed on any server or end user workstation. Standard
> applications for the embedded server include small devices and
> public kiosks. The embedded MySQL server also has the advantage of
> running faster with these types of MySQL applications since network
> connections aren't used and data is not passed between the
> application and MySQL. Version 5.1 of MySQL now includes the
> embedded server as standard within MySQL."

There are two issues here:

- libmysql.a is GPL-ed, so if you want to redistribute your
application, you have to make it GPL-ed too. So, no competition so far
(though, MySQL can easily fix it if they get enough revenue from the
enterprise market)

- it is not clear whether you can use backup with embedded-MySQL (did
not see it on the API level, but I'm not MySQL expert).

Roman