Any spaces added before or after the code, by the instant buttons, will remain there, as that's done on purpose. Certain tags may not parse correctly without having a space before or after. Some may, however, in which case the user should stop using the instant buttons and type the codes instead, which, at least for me, is always faster. <img src="https://www.ubbcentral.com/boards/images/graemlins/wink.gif" alt="" />
Graemlins, for example, need to have spaces in certain places to be parsed. For exa:)mple.
Any spaces injected when interpreting the code for display will remain, as those also would be there on purpose.
The way the new parser works would preclude any sort of global user preferences from being considered during the parsing.