There was a discussion on this on emacs-devel recently (within the month 
of June 2009).  There may be some useful ideas there.  This was by Drew 
Adams and the subject was probably about the fringe.

Anders Munch writes:

 > When at the end of an 80-character line in an 80-column
 > window, where do you paint a block cursor?
 
Good question, thanks!  I can think of at least three
different ways to handle this, though: 
 
1.  Don't paint a block cursor, do something else. 
2.  Always scroll the line to the left as in truncate-lines
    mode.
3.  Treat it the same way as you would actually inserting a
    space there (ie, left-scroll in truncate-lines mode,
    wrap otherwise).

I've always wanted to fix this.  Anybody know of reasons why not?

Guido van Rossum writes:
 > (*) When is Emacs going to fix the bug where it decides to fold a line
 > that's exactly as wide as the window? This 79 business is really
 > silly, and had to impose on people using other editors.

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