Thread's gotten too deep and wide to reply to everyone, so I'd like to vent right here at the top...
We have these machines that are meant to take the tedium out of our lives, let's USE THEM. Why do we not have tools that format things they way I like them? Who cares how the other team members like it? They can use the tool, too. Who cares how it's stored in your VCS? The tool should just be part of the workflow and format spaces/tabs the way I want them and maybe revert to a canonical format for committing to the repo.
Personally, I prefer tabs. I read code best when it's indented four spaces. But John wants to use two spaces in this code. And Ralph likes three. Holy Hell, don't make me wade through someone else's preferences to understand this codebase! Use tabs and people can set them the way they want. Yes, tabs are broken in many places (e.g. Objective-C methods can get so verbose that they need to wrap; convention is to wrap and align the colons; tabbing as far as possible and then spacing to fill breaks things when Ralph formats his tabs to three spaces; in this case, there is indeed a solution: tab to the start of the original line of code, and space to format from there ... but then the IDE has ideas of its own about what should be spaces and what should be tabs...)
Maybe you can read that code with only two spaces of indent, but I can't. I'm gonna need that reformatted to put a larger visual separation between scope changes or whatever required the indention. Rather than have this debate, a tool should be forged.