I added a function to my .Rprofile to more easily adjust the width manually:
setwidth_fun <- function(howWide=Sys.getenv("COLUMNS"))
options(width=as.integer(howWide))
makeActiveBinding("sw", setwidth_fun, baseenv())
as suggested here: http://stackoverflow.com/a/1173161.
As a result of the discussion here: http://r.789695.n4.nabble.com/patch-automatically-adjust-width-option-when-terminal-is-resized-td4745068.html it seems that you can now set "options(setWidthOnResize = TRUE)" and R will behave as expected (on modern installs).