Merge to STABLE please

Liberate case was being far too gung-ho about what to specialise. This
bug only showed up when a recursive function 'f' has a nested recursive
function 'g', where 'g' calls 'f' (as well as recursively calling 'g').
This exact situation happens in GHC/IO.writeLines.

This patch puts things right; see Note [When to specialise].  Result:
much less code bloat.