Is this acknowledged to be a problem?
Depends on what you think is a problem.
Often I write a post up in notepad before putting it online.
It's never word-wrapped, creating serious difficulties when trying to read it
Never had that happen to me, though I usually turn off the word wrap feature in notepad when I'm ready to copy from it. Pasting here works just fine.
(the only solution I've found is to edit the HTML source and manually insert <p> and </p> at the beginning and ends of paragraphs)
Or when you're typing in notepad, hit enter twice to leave a full line space and the forum will mimic it and put in a gap.
(2) The browser zooms to the very bottom of the screen, wayyy past my text, forcing me to scroll up again
Happens to me too, I just hit the up arrow on my keyboard one single time and it's all good.
And, when quoting someone, if I quote them more than once, often the forum fails to register the quote tags until the very end, creating very messy and inaccurate quote trees.
Working just fine as I type this. It doesn't create quote boxes or anything like that, but I'm smart enough to not type in the text I'm quoting.
BBCode is much easier and much less buggy to work with.
Maybe, maybe not. Either way, it didn't get used and the current set up functions well enough.