This issue is still with us in the current BG version, and it is now a major headache for me, making me really want to jettison BG, except that detailed searches have failed to find a workable alternative for my purposes.
The problem appears to be the deleting of *any* empty tags - and my problem is now that I've put Facebook buttons on my many pages, and BG deletes them because they are seen as empty tags. For example, the FB 'Like' button code (apart from the connected Javascript bit) that I'm using is:
<div class="fb-like" data-href="
http://www.clarity-of-being.org/index.htm" data-width="200" data-layout="standard" data-action="like" data-show-faces="false" data-share="true"></div>
Now, I've sought to get round this by putting a non-breaking space between the opening and closing tags. However, that causes an additional blank line in the displayed page. I'm able to compensate for that where the button code itself goes, though I don't know for sure that it won't cause malfunction of the button display on some browsers (Facebook aren't exactly forthcoming in giving such information), but there is another empty div with an ID, which has to be placed immediately above the piece of Javascript, immediately below the <body> tag, and this is causing a blank line above the masthead of each page, and I most certainly don't want that, and I don't know a way of closing up that blank line.
The real answer, undoubtedly, is to stop BG deleting empty tags, at least without the user having requested that action. I'd so much appreciate something being done about this!
Philip.