Good points, but all we're talking about here is replacing the plain old vanilla "textarea" in the ETP page editor (where the user is *expected* to enter HTML anyways) with a WYSIWYG/HTML control which allows non-programmers to format their content without needing to learn HTML.
Believe it or not, the MSIE HTML edit control actually generates half-decent HTML with minimal "look-and-feel" markups (ie, site-wide style sheets still work) unless you explicitly change the font and/or cut and paste from Word or something.
But bitflux sounds like it could be a much better option, especially since it works under multiple browsers.