I tried the latest CVS, and it's better in that there is no exponential growth of weird node clusters, and I could apply outset many times in a row, with acceptable results. However, now it distorts shapes more - not by growing clusters but by changing straight lines to curves and rounding some of the sharp corners more than others. But I think that this approach is still much better, it just needs to be less agressive so as to better preserve the shape.

One problem: now both inset and outset commands do outset :)

As for not using the stroke width for the in/outset distance (bug 860660), I thought that instead of using an absolute value, it's more natural to use a percentage of the object's dimension. For example, 5% of the min(height, width). Could you please program that so we could test how it feels?

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