Are we all talking about shelter going into this same bag? As you know, I have this same bag. I'm thinking "no" on the shelter if this is the bag I'm using. The bag is too small, simply put. If you consider a bandanna to be shelter, then yes I guess shelter is included in my bag.

The thing about a bag this small is that it forces me to plan for my most likely survival scenarios, rather than for every possible scenario. Among my most likely survival scenarios are (1) a major California earthquake and (2) trouble out in the snow. For a major California earthquake, finding shelter after the quake will likely not be an issue. If both my house and car are destroyed (unlikely), there will still be plenty of buildings, trees or debris around to make a shelter. In the snow, I'll be wearing my shelter on me among my clothing, and this bag is too small for carrying appropriate snow shelter along with everything else I would need.

Obviously, your situation may be completely different than mine.