Quote:
Originally Posted by ekster
I'm used to #3, so it's pretty natural for me.
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That's the point: it's a convention. Once you are familiar with the convention, it makes sense, and allows you to see when the current speaker has finished speaking, and somebody else takes over. And that's the whole point of quotation marks - to allow the reader to follow a conversion between multiple speakers without having to fill the text with "Fred said...", "Joe replied...", etc.