Once in a while when using Equinox in an embedded scenario I stumble over bundles that set Eclipse-BundleShape: dir.
As this only evaluated by P2 during install time one always has to do special things. Especially when using BundleContext#installBundle(String, InputStream) it is even not possible at all to use a workaround here.

I therefore wonder if we should not simply add support at Equinox directly it could work this way:

If org.osgi.framework.BundleContext.installBundle(String) is called and not the reference: protocol is used or the string already points to a directory or if org.osgi.framework.BundleContext.installBundle(String, InputStream) is used we check for the header Eclipse-BundleShape and if it is equal to dir instead of copy it into the current bundleFile as today we extract everything from the jar into a bundleDir directory and use that instead so this header is respected.