The check for EROFS was wrong.  For example, if you try to mount a filesystem
appended to an executable that's being run (yes, I'm doing this) you get
EPERM, but mounting readonly fixes it.  Doing the fallback all the time
shouldn't hurt, and is one less test.
diff --git a/libbb/loop.c b/libbb/loop.c
index 25f66fc..f7029d5 100644
--- a/libbb/loop.c
+++ b/libbb/loop.c
@@ -88,10 +88,9 @@
 	int i, dfd, ffd, mode, rc=1;
 
 	// Open the file.  Barf if this doesn't work.
-	if((ffd = open(file, mode=O_RDWR))<0)
-		if(errno!=EROFS || (ffd=open(file,mode=O_RDONLY))<0)
-			return errno;
-
+	if((ffd = open(file, mode=O_RDWR))<0 && (ffd = open(file,mode=O_RDONLY))<0)
+		return errno;
+	
 	// Find a loop device
 	for(i=0;rc;i++) {
 		sprintf(dev, LOOP_FORMAT, i++);