If users want the log viewer to be a more accurate representation of the original channel buffer, so be it-- request that. The current implementation, however, is not buggy, broken, or flawed. It does exactly what it is supposed to do, and that is: it shows you what is in your text files (text files that happen to have IRC logs in them).
Consider that there is essentially only one reason to display the log file in mIRC instead of opening it with Notepad -- to allow mIRC to parse control codes. So, the fact that mIRC moved AWAY from using Notepad, to me, is an indication that Khaled
does not want to treat log files as simple plain text anymore. (Control codes would not be parsed at all if it was treated as plain text.)