Counter-intuitive behavior of org-insert-heading

[Matt Lundin <mdl@imapmail.org>]

The following commit introduced a bug in org-insert-heading.

 commit 3449c6d001b8d261b104bc9dd42bf1290d74bc0b
 Author: Bastien Guerry <bzg@altern.org>
 Date:   Thu Apr 11 00:35:31 2013 +0200
 
     org.el (org-insert-heading): Convert the current line into a headline
     
     * org.el (org-insert-heading-respect-content): Fix docstring.
     (org-insert-heading): When in a non-empty non-headline line,
     convert the current line into a headline.
     
     Thanks to Bernt Hansen for reporting this issue

I have org-insert-heading-respect-content set to nil.

Previously, when hit M-Ret at the end of a line, a new headline was
created on the next line. Pressing return at the end of the line
containing the date would result in a new headline, as expected. E.g.,

* A heading
  [2013-05-20 Mon 11:02]
                
...would become

* A heading
  [2013-05-20 Mon 11:02]
* 

... with the cursor placed after the new asterisk

And if the cursor was at the end of a folded headline, such as.

* A heading...

...a new heading would be created as expected...

* A heading...
*

With the commit above, however, the following happens when I hit the
cursor at the end of the line:

* A heading
* [2013-05-20 Mon 11:02]

And with a folded headline, the same thing happens. When the cursor is 
placed after the invisible section and I hit M-Ret:

* A heading...

...unfolds and becomes...

* A heading
* [2013-05-20 Mon 11:02]

Best,
Matt