Dude, you just don't get it. YOU tell YOUR personal copy of NOTEPAD to turn on wordwrap. MAME doesn't know or care if you do this. If, on the other hand, you insist on using some other software so that you can add formatting, and it converts the file to some format other than plain .txt, then MAME won't like it, and that's your fault, not MAME's.
They use plain, no formatting .txt for compatiblility, and stability. Anything that can run MAME can read and write it- Notepad, Word, Claris Works, Linux stuff, Unix stuff, my cellphone, EVERYTHING. Any other format will give some user somewhere trouble. Also, most other formats keep getting updated when a new version of the software comes out. How much trouble would it cause if they used Microsoft Word? Microsoft comes out with different versions of that every couple years, and the file format changes, every stinking time. Get a new copy of office, edit your MAME config, and BAM! MAME no worky.