Two more patches by Tony Lownds (SF# 1607548).

(1)
Combines the code paths for MAKE_FUNCTION and MAKE_CLOSURE.
Fixes a crash where functions with closures and either annotations or
keyword-only arguments result in MAKE_CLOSURE, but only
MAKE_FUNCTION has the code to handle annotations or keyword-only
arguments.
Includes enough tests to trigger the bug.

(2)
Change peepholer to not bail in the presence of EXTENDED_ARG +
MAKE_FUNCTION.
Enforce the natural 16-bit limit of annotations in compile.c.

Also update Misc/NEWS with the "input = raw_input" change.
diff --git a/Lib/test/test_peepholer.py b/Lib/test/test_peepholer.py
index 213edd2..9ed814a 100644
--- a/Lib/test/test_peepholer.py
+++ b/Lib/test/test_peepholer.py
@@ -195,6 +195,14 @@
         # There should be one jump for the while loop.
         self.assertEqual(asm.split().count('JUMP_ABSOLUTE'), 1)
         self.assertEqual(asm.split().count('RETURN_VALUE'), 2)
+        
+    def test_make_function_doesnt_bail(self):
+        def f():
+            def g()->1+1: 
+                pass
+            return g
+        asm = disassemble(f)
+        self.assert_('BINARY_ADD' not in asm)              
 
 
 def test_main(verbose=None):