I like that the long lines are displayed over more than one terminal line; I don’t like that vim inserts newlines into my actual text. Which part of .vimrc I should change?
I personnally went for:
set wrap,set linebreakset breakindentset showbreak=ͱ.Some explanation:
wrap option visually wraps line instead of having to scroll horizontallylinebreak is for wrapping long lines at a specific character instead of just anywhere when the line happens to be too long, like in the middle of a word. By default, it breaks on whitespace (word separator), but you can configure it with breakat. It also does NOT insert EOL in the file as the OP wanted.breakat is the character where it will visually break the line. No need to modify it if you want to break at whitespace between two words.breakindent enables to visually indent the line when it breaks.showbreak enables to set the character which indicates this break.See :h within vim for more info.
Note that you don't need to modify textwidth nor wrapmargin if you go this route.