Earlier this week I created a test site which worked just fine. I deleted it and tried setting up a new project with "oil generate ...". After checking out loads of files it read "Composer is not installed. Please run 'php composer.phar update' in the root to install Composer"
So that's what I did, and got:
sudo php composer.phar update
Loading composer repositories with package information
To be honest I'm a little worried that being able to create a new website is so dependent on having a working internet connection and github being up and running. On the other hand, this is not something I will be doing too often and FuelPHP looks like a great product, so I'll give your suggestion a try.
You don't have to, nobody's stopping you from downloading them once, and just copy the fuel/vendor folder in when you create a new probject.
Some people even have them installed centrally, so you don't have to. Just change (or add) VENDORPATH in your index.php to point to the central location.
I also know people that tell composer to use zips instead of git clones (using --prefer-dist), and include the fuel/vendor folder in their application repository, so that when you deploy, you don't have to run composer on your production servers.
We do this too, for applications that are hosted in our own datacenter, as we don't allow internet connectivity for servers (so downloading something is out of the question)...
Thanks Harro, even though technically your first comment answered the question already, I think this second one is so useful that I have accepted it as the answer.