I thought by now that I had explained the "problem" pretty well, but I guess I can try some more.
Just to clarify - whitespace means all whitespace characters, that includes the tab character. The space character is just called space AFAIK.
For those that don't see the point of using tab (although that's still beside the point), the point is that your eyes "get used to" the indent with, and reading code with a different indent width can be slower/feel "heavy". By using tab, and setting all your editors to use the tab width you're used to (I use 4 space width), makes all code have the same indentation width. Back when I used space I only used 2 spaces because I was too lazy to keep hitting space so many times (although tab-to-space could "solve" that). Back then, reading code with 4 width indent was "confusing" to me - but now 2 width feels very "dense" and a bit "hard to get an overview of". It's all down to habit and what you're used to, but by using the tab character everybody can get the indentation width that they are "used to" so it makes it easier for everybody. When using space, the indentation width is "fixed" in the code and will always be "wrong" for some people.
I've used a lot of different editors/IDEs, and the first thing I do is usually finding the tab options and in the settings and changing them. I don't think I've seen a similar "problem" with any of the other IDEs, they all usually support using either tab or space for indentation. That's all I wanted to achieve here too - to end up with a code that had "one type" of indentation only - not a mix.
Turning off codetools indentation seems to have solved it for me. Since I don't know exactly what the codetools indentation "magic" does, I don't know if that's a problem, but I suspect that I can live well without it.
As to filing a bug report, I'm not sure that's the right thing here. First of all, I don't know if it's a "bug" as such - if nobody else has missed this and I have now found a way around it, is it really that much of a problem? Ideally I think Lazarus, as every other IDE I've tried, should handle both even with "all features enabled" - but it's not something that I deem important enough for me to "front" the issue or claim it as a bug. It's not a bug per se - I'd call it missing functionality that I would expect should be there.
I expect that filing such a bug report would result in quite a lot more "explaining" of why it matters to have both options - and I honestly have better things to do with my time. On top of that I'm not sure I feel good calling it a bug
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