"But the complexity of any proposed solution for this puzzle is immense, to me: it requires the parser (or more precisely, the lexer) to be able to switch back and forth between indent-sensitive and indent-insensitive modes, keeping a stack of previous modes and indentation level. Technically that can all be solved (there's already a stack of indentation levels that could be generalized). But none of that takes away my gut feeling that it is all an elaborate Rube Goldberg contraption."
source: http://www.artima.com/weblogs/viewpost.jsp?thread=147358
EDIT: This was from an earlier proposal in 2006.