Bundling the JARs with the application simply means putting them in with the other application JARs in the the standard WEB-INF/lib directory.
The sun-web.xml stuff is needed the force the classloader to resolve the JSF classes from WEB-INF/lib instead of from the application server wide versions.
[Message sent by forum member 'hanafey' (hanafey)]
http://forums.java.net/jive/thread.jspa?messageID=353182