[css2.1] Block element inside list-style-position: inside item

Hi,

I want to ask for group clarification on an interoperability issue we've uncovered recently while improving IE interop. Consider the following repro [1]:

ul { list-style-position: inside; }

<ul><li><p>Text</p></li></ul>

IE and Firefox position content on the new line relative to marker, while Chrome uses the same line. It looks like the spec supports IE/Firefox here both in CSS2.1 [2] and CSS3 WD [3]. There is also a CSS2.1 test case for this behavior that IE/Firefox pass and Chrome fail [4].

So it looks like Chrome issue, which we can file as usual, however in our internal discussions we have discussed that Chrome behavior does make sense here and might align better with web developer expectations.

What's WG opinion on this?

[1] http://jsfiddle.net/ne1pfneh/
[2] http://www.w3.org/TR/CSS21/generate.html#list-style
[3] http://dev.w3.org/csswg/css-lists-3/#list-style-position-property
[4] http://test.csswg.org/suites/css2.1/20110323/html4/list-style-position-005.htm