The history of markup and WSYWYG (or, as a friend said, WYSIAYG - what you see is all you get) is fascinating.
The early markup systems (runoff and its derivatives like troff, nroff, IBM's SCRIPT) focused on manipulation of representation. Normal, bold, italic, font size, justification and centering, and so on, were the vocabulary of the old systems. These systems, to me, were assembler language for contemporary phototypesetters.
In the late 1970s and early 1980s we began to get systems that, as Douglas noted, could express the logical structure of documents. GML and SCRIBE were my first exposures to this way of thinking and they made life much much better for the writer.
The standards work that created SGML went a bit overboard, to my taste. The only really serious adopters of SGML that I can think of were the US military, but there may have been others.
Along the way were some fascinating attempts at clever hybrids. Mike Cowlishaw built a markup system for the Oxford University Press back in the early 1980s on secondment from IBM. It had a rather elegant ability to switch between markup mode and rendering mode so you could peek at how something would look. I know that it was used by OUP for the humongous task of converting the OED from its old paper-based production framework to the electronic system that they use today, though I have no idea what the current details are.
The hybrid model is not dead, by the way. The wikimedia system adopts it ... you may edit either in markup mode or in WSYWYG mode, though I find the WSYWYG mode to be frustrating. Sadly, the markdown stuff used by wikimedia is pretty annoying to work with and the rendering is buggy and sometimes incomprehensible (to me, at least).
Making a strong system that includes inline markup editing AND WSYWYG editing with clean flipping between them would be fascinating. Sadly, the markup specifications are flimsy and the ease of creating crazy markup like <h1><b>blah blah</i></h2> in edit mode makes for some difficult exception handling problems.
Marc