My own installer is basically a 5 MB install.php file that looks like this:
The purpose was never to obfuscate the code, but rather to bundle my entire installer into a single file for easier installation. However, it is effectively obfuscated unless you know how to reverse it.
I’ve never had any complaints from reviewers over this. I did eventually add a comment at the top of the file linking to the command line tool that generated and can reverse it, but that was of my own volition for transparency’s sake.
Anyways, if the reviewer has an issue with your obfuscation, it’s possibly because you’re a new author and they’re being cautious in which case you’ll be able to deobfuscate it and resubmit. It’s one of those “won’t hurt to try” scenarios.
Just make sure whatever’s inside that obfuscated code is respectful of the user’s privacy and their server, because someone will deobfuscate it and look inside.