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Take a look at the attached screenshot of the advanced view of the Options dialog. Shouldn't the options in "Options\Editing\XML\General Settings" be located in "Options\Editing\Editor Settings\XML Editor" ?
Created attachment 28523 [details] Screenshot
Reassigning for evaluation.
The location of the XML settings is as designed, so it is not a "bug". On the other hand, the XML settings are mostly related to the editor stuff so we have already considered moving it to the place you suggested, but this haven't been done yet. We will try to do that if have time. Thanks for the report.
Things have changed ever since this was filed.