Now the line wrapping features that nuance suggested has been implemented.
Right now it breaks lines at 80 columns within <CODE> tags by default.
You can turn this off in your user settings or readjust the number of columns at which it breaks lines.
One caveat:
It does the substitutition all of the special characters have been html-escaped this means that lines that contain many of these characters might be cut off prematurely. (There will probably be an improvement there later)