Is there a reason that tests aren't written inline with the code that they test?

Question

I've been reading a bit about Literate Programming recently, and it got me thinking... Well-written tests, especially BDD-style specs can do a better job at explaining what code does than prose does, and have the big advantage of verifying their own accuracy.

I've never seen tests written inline with the code that they test. Is this just because languages don't tend to make it simple to separate application and test code when written in the same source file (and nobody's made it easy), or is there a more principled reason that people separate test code from application code?