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Roam Research does something similar, but expands all LaTeX source for an entire bullet when you try to edit any part of that bullet. Compared to that, do you think only expanding source you're directly editing is a big quality of life improvement?
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I don't know about "big", but yes, I'd describe this behavior as better in most circumstances. (Roam's behavior isn't LaTeX-specific: it switches all WYSIWYM renderings to markup, including text styling, links, etc)
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