Your comments

Well, this certainly doesn't sound like the sort of delay I see. I was talking about tenths of a second.

What kind of file (file size, file type) are you editing?
I assume you're talking about the auto-indentation? Textastic looks at the current line. If there are tabs in front of the first character, it uses tabs, if there are spaces, it uses spaces.

Or do you mean that hitting the "tab" key should insert spaces instead of a tab character?
Thanks for the screenshot! Yes, the syntax highlighter doesn't like alphanumeric characters in front of quotes.

So, in your case, the syntax highlighter does the right thing when you insert a space after "echo" like this:

echo '<p align="center">'.$copyright.'</b>';

Sorry for the inconvenience.
That's actually possible with 3). You can edit the recently opened files or mark a whole folder to keep a local copy of it.
I see. This would indeed be pretty nice to have. I don't know if I can have the same kind of incremental visual search I have for searching in a single file due to memory constraints though.
What problem are you actually trying to solve? :)

With iOS 4.2 and multitasking/fast app switching this probably wouldn't help much.
I see that your ideas are more sophisticated than just code snippets. I'll see what I can do!
I just tried it and it worked fine for me. Did you try to double-tap in the line and then drag the selection handles?