Non-top-level functions compiled incorrectly

With SIMPLE_OPTMIZATIONS,

``` javascript
if (!Math.PI) {
function foo() {}
}
foo();
```

compiles to

``` javascript
if(!Math.PI)var foo=function(){};foo();
```

The original runs without error in all major browsers; the second does not.
Plus, it could even be longer than the original (if you had already removed whitespace and braces).
It should output

``` javascript
if(!Math.PI)function foo(){};foo();
```

(You could also move the function declaration to the top of the scope, but probably not with `SIMPLE_OPTIMIZATIONS`, and in `ADVANCED_OPTIMIZATIONS`, `foo` will be inlined anyway.)

Perhaps someone tried to make the output compatible with ES5 strict?