@andyj: Fluxbox, Xorg and xf86-video-intel, en_US.UTF-8
FWIW my guess is that the two things butting heads in the top terminal in screenshot (with larger font I normally use) are:
linewrapper #1: readline (responsible for the first--appropriate--line wrap)
linewrapper #2: rxvt or possibly ash (responsible for the inappropriate line wrap after "-10.")
Interestingly, I cannot reproduce the problem in that top terminal 100% of the time. Most of the time it happens but sometimes it doesn't. Tab completion seems to make it happen more reliably but is not a guarantee.
From the bottom terminal you can see that if window is wide enough to fit 80 characters or more for your font size, only linewrapper #2 is in play. With only one linewrapper at play, there's no butting heads. It takes two to tango.
Therefore my
workaround was to make the terminal at least 80 characters wide for my font size, then tell fluxbox to remember the window dimensions for rxvt.
If someone finds a proper solution rather than a workaround like mine--or if you know for sure who the two linewrappers are--please do share!