I really like where this editor is headed!
Just for kicks, let me describe my dream editor:
1) Start with WYMeditor
2) Include an image uploader and file manager (like in Xinha)
3) Add the ability to create tables (hey, they are useful sometimes)
4) Add the ability to automatically strips out all style and non-markup tags when you past text in
5) Add the ability to automatically convert typed or pasted non-SGML characters to their corresponding UTF-8 codes.
The last two correspond with the biggest problem I face when handing off content-managed sites to clients. They paste in the text from word and it turns into a mess.