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As we all know this is a religious issue and Eclipse needs to be able to adapt to peoples bracketing/spacing styles. Allowing fine control over the code formatting would be very useful, especially if code formatting profiles could be exported and loaded (associated with projects?) to support consistent style through a project. Perhaps even automatic reformatting on save. It appears that this could be easily added to Eclipse as the current formatter strips any spacing out and formats to a consistent style, so all that should be needed is the configurability and logic to insert spacing/newlines where required. IDEA IntelliJ (http://www.intellij.com) is an excellent example of what I'm talking about.
After 2.0 is out, we will likely consider reworking considerably the code formatter. Deferring it until then.
Resurrecting formatter issues in 2.1 stream.
Clearing resolution
We need to clear 2.1 bug reports that won't be addressed before 2.1. The new implementation is still in the works. Therefore we cannot include it for 2.1. Not enough testing and we need to polish the preferences. This will be address for 2.2 as stated in the JDT/Core plan.
Resurrecting for 3.0
Reopen for 3.0 consideration.
The new formatter has more than an hundred different options. You can customize a lot. When the preference page will be available (between M4 and M5), let me know if you want more customization. Fixed and released in HEAD.