I am confused by your question.
Changing the wrapping only changes the display of text. It
does not change the connection between what you type and
what gets sent to the server.
I suspect that what you are complaining about is that all
text is assumed to be raw HTML. Well having an option to
view it as formatted text might be nice (just steal from the
/ code-base) but is a somewhat separate problem. (For
Netscape users such an option would be useless without the
wrap attribute I just mentioned. To see what I want in
action go to a site like
kuro5hin, get an
account, and try to post in Netscape.