With regard to "code collapse" I did not mean in the Dreamweaver sense where the code can be made to "disappear". What I meant by code "collapses and wraps" was that when I was in source view in the demo, I added some space/blank lines between div tags, put the heading tags on their own line, etc. to make it easier to read in source view, all while not changing how the design or preview page appears. Going from my "readable" source to design view back to source view undid all my spacing, and returned the code to it's original, less readable state. Granted clients will probably never do this, but I was just curious how PowerCMS would deal with my changes.
Are you saying that there is a "Source Formatting option in the Coding toolbar" of PCMS, that gives control similar to the code format preference in Dreamweaver? I did not see any reference to that in the PCMS toolbar. If that is the case, that this control exists somewhere within PCMS, then I as the developer can exert some control over how the code will appear after the client edits the page in PCMS.
I also noticed that when I change text color to red (or any non-black color) using the color picker on the PCMS toolbar, that rgb values were used in the code instead of the more common (in my opinion) hex number (that Dreamweaver uses when doing the same thing). Nothing wrong with that, but what was the thinking there? I know that Eric Meyer uses both formats interchangeably in his books.
Allso, if you could, please elaborate on the point Mark Fletcher made in the feature tour about PowerCMS integration with EM CSS Sculptur.