This reminds me of the Tabs vs Space discussion, and how once Bill Gates did an AMA on Reddit and his answer was that tabs was better because of consistency.
In code which uses tabs one logical indentation level is always one tab. You can show tab with different width in you editor, but the source code is consistent.
If spaces are used you never know how many spaces is one logical level. There is no agreement - some people prefer 2 spaces, some 4 and may be somebody uses 8 or 6.
Even worse - I sometimes see when in a single source file some parts use 2 spaces for one logical indent and some - 4 spaces.
Do any code editors also treat a delete of one of these spaces as removing the tab width size? (I've never seen it, but maybe there are ones that do that.) What tends to happen is that yes, the tab enters the N spaces, but if you have to move code around, you can find yourself deleting a lot of spaces.
You are right, it looks like it tries to do the right thing on indent. Though if you try and use tabs to align anything after an indent it just treats them as spaces.
