Happy Apple Bug Friday: Safari Live HTML Editing

I'm using HTMLArea to have a WYSIWYG HTML editor on my web site that replaces a <textarea> form tag. It mostly works in Safari these days, but it seems that Safari generates horribly unpretty (and even slightly buggy) HTML code. E.g. if I enter a text with three lines ("This", "That" and "More", with empty lines between them), I get:

This
<div><br class="khtml-block-placeholder" /><div>That</div><div><br class="khtml-block-placeholder" /></div><div>More</div></div>

This causes the first line to be spaced two lines, while the following lines are only one line apart, as desired. In addition, the class on the <br> tag is one nobody will have in their style sheet, and is undesired.
A fix would be to have Safari generate either:

<div>This</div><div>That</div><div>More</div>

or even better

This<br />
<br />
That<br />
<br />
More

Filed as Bug ID: 4321683