On: This is a regular text file. People will read it. ...

[gabemart]

This is an interesting approach, but markdown strips whitespace which could be problematic with some forms of indentation (for dialogue, etc.)

Might still be worth it though. Thanks.

[asdfaoeu → gabemart]

What sort of indentation do you want? Markdown allows pre-formatted text for code and the like. http://daringfireball.net/projects/markdown/syntax#precode

[kybernetikos → gabemart]

I had exactly that problem, although use of text-indent in the css meant that every paragraph starts indented, so you just make each line of dialogue a new paragraph and it works out ok. So yes, it's not ideal, but it's still pretty good.