On behalf of Adobe …
The moment you create PDF via distillation of PostScript (which is what you are doing if you “print” to a PostScript driver and distill the resultant PostScript), transparency flattening occurs. It occurs in Illustrator which generates the PostScript — it does not occur in Acrobat (and for that matter, Acrobat 4.x doesn't even know what transparency is, much less be capable of flattening it). Why? Because PostScript doesn't support live transparency! Thus, when you have live transparency in an Illustrator document, when printing, transparency must be flattened as part of the process of generating PostScript. If text is involved in an area where there is transparency, unless the text is totally overlaying transparent content underneath it, the text will either be outlined and/or rasterized. That is why fonts used for such text are not embedded.
Quite frankly, if you are dealing with PDF workflows that involve transparency in any way, shape, or form, you really are dealing with Neanderthal versions of software that were not designed for modern PDF publishing workflows in which live transparency and color management are really requirements. Acrobat 4.x was released over 17 years ago (1999) and Creative Suite 4 programs were released over eight years ago.
- Dov