> Creates undo points on common punctuation during Insert mode, including deletion via line <C-U> and word <C-W>

When I've used Vim, the undo points frustrated me: One undo covers a much larger set of events / longer time than in other writing applications. I think it 'undoes' until the last command.

Every other program does it more granually and, once I thought about it, amazingly intuitively - I've never had to think about it. Is there a general algorithm they all use?

> soft line wrap

Also, is there a way to make Vim's soft line wrap break lines at standard points, such as between words and at hyphens? Vim seems to break lines at the line character limit, regardless of where that is in the word or sentence.