When the literate program is woven for reading with a WWW browser, each pseudocode phrase becomes a hyperlink to the code it represents. For simplicity in the above example, only one pseudocode instance has a hyperlink. If it were placed as a comment it would make the code unreadable. If it were explained externally, the link between explanation and code would be tenuous. If it were missing, the side effects would drive you crazy.
Literate programming strikes the right balance.
Here, its true that one visible side effect could be avoided. However, in scripting languages, side effects are often the only way things get done. If you are writing scripts for others to adapt, you can save time for those people by writing in a literate style. Even if they don't have a literate programming tool, they can read what you have written with a WWW browser. If they do have a tool, they will find adaptations of your script even easier.