I would actually prefer the former markup, as it lets you control how each line wraps in narrow screens (typically, I'd have some largish negative indent; ideally, the wrapped part would be right-aligned)
I see you have spaces before the <p>, is that the case in every stanza and only inside stanzas?, then you could try something like:
search: "^ <p>(.*)</p>"
replace: " \1<br/>"
Otherwise, it gets complicated, I'd probably proceed stepwise: search for "<div class="stanza">, whatever, </p>\n<p>, whatever, </div>", where "whatever" stands for "any character, including newlines, multiple times, as few as possible", and repeat as needed.
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