> line-editing on a command pulled from the history, in bash, destructively edit the history
Annoyance #1 with bash, I agree. I wonder whether there is an option to control that. Read the man page once, but I might have overlooked it.
Annoyance #2: If you press Ctrl-C, get your prompt not in the beginning of the line, scroll back in history and edit, the outcome is not WYSIWYG but a mess.
This is 2011 and not 1970 so it should be possible for the program to make sure it knows what the line on the screen looks like. I guess technically this is a GNU readline issue, so the fix needs to go there. Isn't history editing also provided by GNU readline? So the same might hold for Annoyance #1