I think you're right. We should have paid more attention to the underlying code in PowerCMS; we definitely should have avoided the inline styles and probably a number of the span tags. Although it's all proper HTML/CSS, it's not best practice and we'll do a more throrough code review in the next releasees.
That being said, keep in mind that the pages included in PowerCMS and on view in the demo are administrative in nature and not public-facing that need to be crawled by SEO, etc. You won't run into any problems with loading or cross-browser compatibility. Not to excuse the overuse of inline styles, but with any coded solution, any power coder is going to find sections that are not done the way he/she would have done it.
As for Dreamweaver representation in code view, it looks pretty standard to me. I'm not sure what you're referring to as "code collapses and wraps", but I don't see any of that outside of the normal word wrap (when toggled on). Naturally, you can always hit the Apply Source Formatting option in the Coding toolbar to reformat according to your preferences.
Best - Joe
