If RMS confirms that is the case, then I will retract my request that this be a blocking bug for the next release but I have a feeling the old behavior was intended. 

I think you are misstating what happens a bit or should use some other phrasing.  It is not that invisible text is ignored, it is simply that invisible line endings are ignored when computing lines and the text of invisible lines is paired with any prior visible line as part of it.  Thus, the text characters within the invisible part are still considered when sorting but they are not sorted separately from the visible parts.

Bob