Hi neonix
This is the design philosophy:
Tiny Core is not a turnkey distribution. It is very different than most Linux distributions.
It is a minimal GUI environment that allows users to easily pick and choose their desired applications. ...
To the best of my knowledge, that is still the goal.
The editor from Xprogs is there to provide basic editing capability
in a GUI environment.
I would suggest one of the reasons it's included is to provide users
with a small simple to use editor that won't break configuration files.
I think most if not all config files want to be in plain ASCII, or they will break.
If text wrapping inserts a newline character, it will cause breakage.
Here's a thought. Why not install an editor that has the features you want?
Maybe take a look at:
leafpad
abiword
libreoffice