Comment # 7 on bug 1152590 from Jiri Slaby

(In reply to Jiri Slaby from comment #6)
> This mangling does not happen with binutils with avr support in the above
> project. Let me check whether linking works once this all gets build.

yes, after making examples/demo from avr-libc, the result now looks sensible:
objdump -b binary -m avr:4 -D demo.bin 

demo.bin:     file format binary


Disassembly of section .data:

00000000 <.data>:
   0:   12 c0           rjmp    .+36            ;  0x26
   2:   21 c0           rjmp    .+66            ;  0x46
   4:   20 c0           rjmp    .+64            ;  0x46
   6:   1f c0           rjmp    .+62            ;  0x46
...
  ea:   f8 94           cli
  ec:   ff cf           rjmp    .-2             ;  0xec

I have noticed the update just landed to devel:gcc/binutils. We are done here,
I think.