Your comments

Which syntax definition is selected in the File Properties popover?
I didn't have any of these problems in my test, but I'm going to try to reproduce it.
That would also be my suggestion: select the "XML" syntax definition in the File Properties popover. Textastic will use this syntax definition for all files with the same extension after you do that.
Can you please give me some more details so I can try to reproduce it?

Textastic doesn't include any compilers or interpreters. It can preview HTML, CSS, JavaScript and Markdown. You would have to upload the file to a server/computer and compile it there - for example using an SSH app like iSSH or Prompt. 

Long would be more like 10000 characters in a line. 200 characters is no problem. Yes, you can change the font size.

You can indent and unindent code. Block-commenting is currently not supported. 

Soft tabs (spaces in instead of characters) are fully supported.

There is a symbol list for JavaScript that allows you to jump to functions. Textastic also has code completion support for JavaScript.

Due to restrictions of iOS, Textastic does not include a PHP interpreter. Textastic can locally preview HTML, CSS, JavaScript and Markdown. For PHP files, you can upload the file to a (test) server and enter the url in the remote preview screen. 

 

20.000 lines shouldn't be a problem. Just be sure to use an iPad 2 or a 3rd generation iPad because it has much more RAM than the 1st generation iPad. 

It's also important that the file is not minified - very long lines without line breaks are more problematic than a large number of lines.
Textastic supports TextMate syntax definitions. See http://www.textasticapp.com/v4/manual/lessons/How_can_I_add_my_own_syntax_definitions__themes_and_templates.html 

Unfortunately, I couldn't find a TextMate bundle for VRML.
That's not possible on iOS. All code of an app must be in a single binary that must be reviewed by Apple. This violates the GPL according to some interpretations - that's why for example the VLC app is no longer on the App Store, although the full source code was available... Also, Git requires a shell environment which is not available on iOS.