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So which one should I be looking at? I like the blue one better than the orange one

The blue one

Hay Onartis
A white-space: rule, in this case pre, is the same as using the html pre tags
<pre></pre>

It keeps all white space including line breaks as it is.
So if you write ~
<p>
Hello
my
name
is
Onartis
</p>

What would happen?
It would be outputed to the browser as ~
Hello my name is Onartis

As you have not used any br tags.
If however you give it a rule of pre, or use pre tags~
<pre>
Hello
my
name
is
Onartis
</pre>
It would be outputted as

Hello
my
name
is
Onartis

Without the use of the br tag, thus cutting code bloat.

Hope it helps
Jaz

Key:
Purple ~ XHTML

So it adds a breakline every time your browser meets a point where you hit the return key or does it break the line after/in front of each word?

Are there other options than pre ?

It presevres the white space within the tag with the rule.
So the first example you give. :-)

Jaz