We voted on this at W^5 and decided to put nested lists in the HTML spec.
Here is a list of other stuff that was decided...
Defined Implementation Levels -- HTML: Level 0
----------------------------------------------
It was decided to add the following items to the HTML spec before it
goes out for RFC. Browser writers should be implementing these features
RSN. This is not the definitive list, I don't know who owns the problem
for sure. Whoever is going to own this should speak up so people doing
implementations can ask questions.
<BR>
I forget what this was supposed to be, I think it means force a line
break.
<HR>
Horizontal rule, replaces use of ---------------------
 
Other entities will added also, wait for the spec for details
nbsp means non-breakable white space
allow nested lists (DL NL DL)
ala NCSA Mosaic
<IMG ALT="text to display if you can't display the image" SRC="" ISMAP>
(ISMAP is depreciate, see below about "Accepted: SPACEJUMP")
Allow <DT>'s without <DD>'s
e.g., <DL><DT>one<DT>two<DT>three</DL>
White Space is to be folded
This means "foo bar" should render the same as "foo bar".
--sanders