Omg, you don’t want to know what it took to switch this over to fully DOM instead of using innerHTML. I had no choice if I wanted to use these little things called “HTML tags”. Perhaps you’ve heard of them, but they are little b4stards!
I broke a heck of a lot of the functionality from yesterday, but it’s now smart enough to pick the right line of text, and if you click on the bolded word, you’ll see that you can now left-arrow key back into HTML tags and start typing. Of course, there’s no cursor to show that unless you type something…so you’ll just have to take my word for it 
I’m going to have nightmares about DOM…and clowns 
Demo v0.0.3 (Mozilla/Firefox, IE, Safari)