I have been wondering if Vim has the capability to smart wrap lines of code, so that it keeps the same indentation as the line that it is indenting. I have noticed it on som
UPDATE: In June 2014, a patch to support a breakindent option was merged into Vim (version 7.4.346 or later for best support).
You might also try :set nowrap which will allow vim to display long lines by scrolling to the right. This may be useful for examining the overall structure of a document, but can be less convenient for actually editing.
Other options close to what you're looking for are linebreak and showbreak. With showbreak, you can modify what is displayed at the left margin of lines that are wrapped, but unfortunately it doesn't allow a variable indent depending on the current context.