Can you be more specific on what you consider the "proper format" to be, and what exactly "direct text" means with respect to the editor?

They're not going to show final HTML direct in the editor, but I'm unclear exactly what you're seeing and what you are expecting.

I think you're saying that the highlighting effect isn't there (kbd tag in the source view)?
So just a very minor bug right?

Ok I found and fixed a problem in recent optimisations that caused the small bug I found and potentially others, so I'll consider this fixed unless reopened.