I know this is probably a holy war, but I have a huge SPACE bar on my key, it's sole job is to insert spaces.

Precisely. If I want to indent/outdent an entire block of code, I prefer to select multiple lines all at once then press the "tab" key (or shift+tab) until the indentation for that block of lines is to my liking. If this behavior were somehow tied to the space bar, that would be weird.