Why Rich Text (HTML Only) format email introduces line breaks (paragraph marks) in the email body in html?

A sentence in rich text (change in Options, Delivery format) appears as a single sentence in browser. But when I check the page source I see that sentence has been broken in to multiple lines. Why is this done? Isn't this a bug?
When viewed in a browser or application that supports rich text this does not create any problem since the line breaks are not taken into account . But I am trying to extract the text from this html and display in a nonHTML application like notepad.
Is this done on purpose?
For eg.
In browser - Honesty is the best policy
In View HTML Source -
Honesty
Is the
best
policy.

lets start at the beginning.
There is no such thing as rich text email, unless it in internal corporate stuff like MS Exchange, Lotus notes etc. EMail on the internet is HTML or Plain Text.
I have no options > delivery format in my settings. Is this something to do with Outlook perhaps?
Then there is your image. All those MSO objects. They stand for Microsoft Office Objects and indicate the source of the HTML as being Outlook or at least Microsoft Office. All in all I think your asking about Microsoft actions on a Mozilla forum.

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