Literate programming is not "embedding documentation". The main idea was to separate the order in which the code is read from the order in which the compiler sees it, and it embeds the code in the documentation, not vice versa. It was a very idiosyncratic thing, hard to imagine a team of programmers in a typical current commercial setting, developing a nice LaTeX essay around the actual code of the next social network web-app. As the program grows larger it also gets harder and harder to maintain the "story" around it.