Hey Robert -
Re: code collapse - no, you won't see anything like that with PowerCMS. We're not doing anything out of the ordinary on the code side. It should retain its readability.
Re: source formatting - I was referring to the Dreamweaver option that is on the Coding toolbar in CS3 and up. Same as in the menu, but quicker access.
Re: color picker. We use our iRite product to provide the HTML formatting capability in PowerCMS and iRite uses the FCKeditor 2.6 codebase. Evidently using the RGB values is a bug in that version and was fixed in a more recent version. We'll be updating to the latest FCKeditor code when we rev iRite (no time frame as yet, but it's in the queue).
Best - Joe