TextEdit data loss concerns

Over at MacOSXHints, Rob G. has posted a must-read article about possible data loss from TextEdit's Save dialog. The problem stems from TextEdit's (and Cocoa's) willingness to overwrite entire folders with text files.

This data security hole seems to occur because "bundle" style files (which are actually folders and not single files) are considered on-par with flat files in OS X. TextEdit does not seem to check to ensure that the folder being replaced is actually a bundle and not, say, your entire home directory. It's an important article to read and a bug that you need to be aware of.