Awesome. When I saw all the things it could do in so little code, I assumed a higher level language would be used. But, nope...plain old C with the usual standard libraries.
The parser for the syntax highlighting is super cool. Concise and declarative definition of the syntax (well, the keywords, anyway), in HL_keywords, and then maybe 150 lines of code for the parser. I doubt it would work well for a much more complex language than C (say, JavaScript, or Perl), without a lot more smarts. But, it works really well on the C I looked at. Colors are handled in a cute way, too.
All around, I'm just astounded at how concise this is, while still being entirely readable and comprehensible. This isn't clever/tricky golfing code, this is actually human-readable C code.
Edit: Also, I'm struck by how nice/simple the editorProcessKeypress handling is. Trying to do something like this in JavaScript/HTML5 is crazily more complex and verbose. Seeing something like this reminds me how messy user interaction still is in the browser, compared to old CLI and desktop paradigms.
The syntax highlighter isn't really a parser, per se. It's just a lexer / tokenizer / scanner / what-have-you, which tend to be fairly compact state machines.
As an aside, I agree with your edit. As someone who started programming back in the DOS days, whenever I do Web development, I'm always floored by how much it feels like one step forward and two steps back. So many simple things just aren't simple when it comes to the browser, and even certain protocols on the backend like FastCGI seem way more complicated than they need to be (SCGI seems pretty nice, though I feel it's missing a way to signal out-of-band information to the Web server, the way you'd use stderr in CGI, for example (though perhaps I'm missing something there)).
As much as I love the idea of sending semantic markup over the wire for document transfer, I can't help but wonder if a more terminal-like protocol would be better for application "delivery", the way we used to do with telnet and BBSs in the 90s, with an upgrade for multimedia. But I digress...
FastCGI/SCGI were obsoleted by having app servers simply speak HTTP; the web gateway just needs to function as a simple reverse proxy. HTTP is about as simple as it gets to parse - you can write a passable (not quite production quality, but works) parser in about 10 minutes.
A lot of the difficulty in webapps is because every webapp is inherently a distributed system, which are always hard. Single-page apps with no connection to a server are actually quite simple, but they're also about as commercially viable as DOS programming (i.e. not at all).
A while back I'm sure I saw a HTTP state diagram posted here that showed writing a HTTP parser is anything but simple. I guess if you only have to be a (reverse) proxy you might get away with it.