It's one thing to be able to edit code using a fancy new text editor in WebVelocity, but we need all the existing facilities - syntax color highlighting, contextual sensitive information for implementors/senders, etc.
Jerry Kott and I have been working hard on making that a possibility for WebVelocity 1.1 with our new text editor. I can officially say now that we broke the back of the camel and this stuff finally works at a speed that is more than acceptable and with a flavor of behavior that goes beyond our expectations.
There is more work to do, we intend to have "stylists" for Smalltalk, Javascript, PEG, CSS, XML and may be even SQL if we find there's a need for it. See the following video for an "mid-days" view of the editor in action in our parsing playground, where we've been testing how the editor and the parsers interact with each other.
The link to the video: http://dl.dropbox.com/u/20291/Cincom%20Smalltalk/WebVelocity-20091110-SourceCodeEditor.mov