> It actually doesn't matter that much for me, I only work with web2py 
> templates.  End result just looks little unprofessional since it's not 
> formatted properly and I couldn't figure out any reason why not to do so.
>

"Unprofessional" to whom? Who's looking at the page source that you're 
trying to impress (that wouldn't understand the nature of template engines 
and the unimportance of indentation)?
 

> I think this would be a nice to have feature in production to get cleaner 
> and more professional looking end result.
>

Production is the one place you probably don't want this feature, as it 
would require a little extra processing and increase the payload.
 

> And human readable HTML helps also in development, especially if you're 
> working with someone who is not familiar with web2py templates.
>

Again, keep in mind that you can just indent the content in the included 
file. Any decent code editor will let you quickly indent multiple lines 
simultaneously.

Anthony

-- 
Resources:
- http://web2py.com
- http://web2py.com/book (Documentation)
- http://github.com/web2py/web2py (Source code)
- https://code.google.com/p/web2py/issues/list (Report Issues)
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