[quietbritishjim]

I think you can turn off that smart selection thing. There is corresponding "smart" behaviour when you drag a selection to a different place so you don't end up with missing or duplicated spaces, so the precise boundary of the selection isn't as important as you think unless you want to select mid-word. I think for most people this behaviour that you find annoying is actually useful - remember that Microsoft is one of the few companies that actually does real user testing.

For your other objection (and maybe what you were also really getting at with your selection objection), maybe you'd like WordPerfect 5.1's "reveal codes"? :-) We can all agree that Microsoft wouldn't have hesitated to steal that feature if it would have benefitted them. The fact that they didn't is proof that formatting markup is something that was historically tried (or considered) and rejected, rather than something waiting to happen in the future.

In any case, for a program as huge as Microsoft Word, I think this is all quite minor. How much of your day is really ruined if you start typing after some bold text, find that the new text is bold when you didn't want it to be, and have to manually turn it off again? It's a fundamental problem with the model, like you said, but has surprisingly tiny impact on usability. If this is your biggest objection, it's almost proof that the program is pretty good. (But I can sympathise with minor objections: I hate copy and paste works differently in Excel then any other program!)