That means you either have to compile software locally on each machine, or you have a combinatorial explosion of possible features.

Compiling locally has several drawbacks. It needs the full compilation environment installed on every machine, which uses a lot of disk space, and some security people dislike it (because then attackers can also compile software locally on that machine); compiling needs a lot of memory and disk space, and uses a lot of processor time and electric power. It also means that signature schemes which only allow signed code cannot be used (or you need to have the signing key available on the target machine, making it somewhat pointless).

The combinatorial explosion of features has been somewhat tamed lately, by bundling sets of feature into feature levels (x86_64-v1, etc), but that still quadruples the amount of compiled code to be distributed, and newer features still have to be selected at runtime.