Packages normally contain the executable code, not the sources. You would compile your code for the target machine, then package it up, so that the user can install it. It is a bit more than copying and pasting, since ideally it would also make necessary changes to the system configuration, as well as record enough information to be able to remove the installed files later.
(Think of it this way: if you install Visual Studio, you're not compiling it, as you have nothing to compile it with at the time of the installation. And yet, it comes in a package.)
The last point is thus obvious: if you don't package up your source codes, people will not be able to read them. However, do not rely on "security by obscurity" - if someone has sufficient skill, they can disassemble or decompile your program.