Terry Allen from O'Reilly argues that white space is significant to the meaning of the text and therefore needs first-class support in HTML, even outside of PRE. Others emphatically consider white space to be a formatting issue that has no place in HTML, which they feel should be entirely presentation-agnostic.
Interestingly, a couple of times people mention the possibility of building in support for TeX and other markup languages to fill the need for precisely-formatted documents. Specifying the presentation of HTML in a separate file (what we know as CSS) doesn't appear to be on anyone's radar yet. I wonder what the web would look like today if that had been the route we took.
[0] http://1997.webhistory.org/www.lists/www-talk.1993q2/index.h...