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Probably you are fully right. Simpler is better.
But then I think the third issue should be better handled. I mean if you jump backwards and you start editing, you currently have a version control system running with two different branches. Until you create a new checkpoint, the "obsolete" branch is kept saved.
If possible (and if it has no other undesired side effect I haven't thought of) I think you should automatically remove that "obsolete" branch if any modification, or just any typing, occurs.
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