I find 'smart wrapping' very easy to read. (Code is wrapped and auto-indented to the current indentation level.) I wish this feature was far more prevalent and it means that I don't have to worry about manually breaking the occasional long line, the entire line still fits within a window of any size, and the code remains perfectly readable.

I don't disagree that the usual implementation of wrapped code is pretty terrible (because it goes back to the start of the line, thus spectacularly breaking the indentation-based formatting - UltraEdit is the only implementation I've seen that gets it right), but it's still the right thing to do because the alternatives are even more terrible.

I get truncated code all over the place, and that is worse! Clearly you do have to get the indents sane. Of course short lines are better too.