I really want to use Xcode to edit Objective-C. I desperately want to. Xcode 3 comes closer to being a usable editor, but I really wish that Xcode had the following feature:
I never liked navigating around the brackets in Objective-C, so this was something I hacked into Emacs pretty early on while adapting to Cocoa.
On the topic of editors, there's a cool editor for Scheme called DivaScheme. It's heavily influenced by vi and it makes navigating through code a breeze. Much of what is cool in DivaScheme is possible because Scheme and Lisp's syntax is so minimal, but I don't see why the concept can't be applied to Obj-C as well. If you are planning to write Yet Another Text Editor, please do us all a favor and click the link below. The page has a short video tutorial.
Link to DivaScheme