Hello!
If you don't have it, you wont need it. It is used by bash, and since bash is installed as the default sh shell when you install its package, you wouldn't be able to boot since that lib ends up being in the SD before this is available (the module hasn't been loaded yet, since sh is needed to run the init scripts).
After a long time, I've been using another scheme of installing things to SD and using ipkg-link and I've been pretty satisfied, I believe you'll be too. I have almot 4Mb of / free, and I believe more could be released.
I believe you won't need to go the kung foo way any more.
OZ 3.5.1 is a show up of what OZ will be, a new kernel will break the chains to legacy we have for 5000 and 5500 devices. We just have to wait for a working 2.6. OZ will be (and IMHO already is) perfect.
The OE team has put up together something Sharp was too blind to see, and unable to achieve. We should expect great things from OE.
C ya.