Hmm.. apparently this is happening because by default on edgy vim-tiny is installed instead of vim-full. vim-tiny, when run as vi, turns on compatible mode, but vim-full does not.
https://launchpad.net/distros/ubuntu/+source/vim/+bug/70569 -- using up/down/right/left arrow in insert (i) mode wont works https://launchpad.net/bugs/72174 -- ubuntu-bugs mailing list ubuntu-bugs@lists.ubuntu.com https://lists.ubuntu.com/mailman/listinfo/ubuntu-bugs