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What code do you want to hide? HTML DB just generates HTML/CSS that has to be in plain text so that the browser can render the page! There is no other "code" as such to hide. You can see the HTML/CSS behind any commercial website out there using the browser's View Source function.
This seems to be in use at popular sites like Yahoo
Hope this helps.
Ah, I see. Yes, it should easily be possible to code all components in HTML DB using packaged stored procedure/function calls and wrap those package(s).
Query regions could use the PL/SQL function body returning query.
After submit processes could use a package.proc call and even use v('ITEM') to read the values from session state instead of passing them in as parameters to the proc (if that level of paranoia is desired!)