Why are Perl source filters bad and when is it OK to use them?

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It is "common knowledge" that source filters are bad and should not be used in production code.

When answering a a similar, but more specific question I couldn't find any good references that explain clearly why filters are bad and when they can be safely used. I think now is time to create one.

  1. Why are source filters bad?
  2. When is it OK to use a source filter?
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