When I view some simple HTML using the new w3 (package versions 1.37,
1.38), lists have an excessive amount of indentation.

I think this makes w3 unusable.

For example:

*** w3-1.36	Thu May 24 15:29:44 2012
--- w3-1.38	Thu May 24 15:28:52 2012
***************
*** 2,9 ****
  
  Mike's Reference Library
  
!    o Aikido
!    o Audio that I own
!    o Bay Area
!         o SF and north Peninsula soil types
!         o mid-Peninsula and south bay soil types
--- 2,16 ----
  
  Mike's Reference Library
  
!                                 o Aikido
!                                 o Audio that I own
!                                 o Bay Area
!                                                                   o SF and
!                                                                     north
!                                                                     Peninsula
!                                                                     soil types
!                                                                   o
!                                                                     mid-Peninsula
!                                                                     and south
!                                                                     bay soil
!                                                                     types

Reproduced with -vanilla on 21.4 and 21.5 (0df3cedee9ac).