Dhan, thanks for your message! Thats good to know about the code block. Another reason at least the option of straight text is nice, is because I use a tool called QuickCursor, but it only works with plain text blocks. Basically, it lets me edit my answer/comment/post in TextMate (my preferred editor) then save back to the live text field so I can save. This lets me work in the environment I am used to as a coder, with little things like *italic* or **bold** etc, vs having to find buttons and click. Another cool thing with the StackOverflow markdown (might be the same with all markdown) is I can surround a keyword with `backticks` and it automatically gets wrapped with <tt></tt> and a monospace font. It just makes it really clear to denote inline code blocks.
Finally, take everything I just said with a grain of salt. I am obviously going to like what I am used to better than something different. Do what works for you guys, and I can adapt :)