You implicitly use the MiNTLib, but -mshort has not been supported by the MiNTLib for ages, so this is an invalid usage.
Damn, right. Actually I was kind of aware of that, I just thought that if I stay out of mintlib, I can run my own TOS-calls-only programs. But as I got your reply, I realized what's the problem -- 'int argc' is interpreted as 16-bit it, so I changed it to long and voila, command line is back. Probably not 100% clean solution but what else can go wrong, it doesn't matter how the init code is compiled, there's only one jsr _main with the mentioned argc and argv on stack.