Hello Jeff,
The tags in the existing code are not indented for you. If you wish to have them indented, you can go into the code using the text editor and change the indentation for each page/post. You can also copy the code into a separate text editor and then make the indentations for the code there, then copy it back into the text editor. At present, even in a default WordPress installation, there is no automatic indentation of the code in text view nor any current plans to format existing code. I also verified this by looking at a default WordPress installation and viewing one of their sample pages.
If you have any further questions, please let us know.
Kindest regards,
Arnel C.