I had some kind soul build a patch to allow htmlarea to use the new forms api that drupal is using. I found this really cool, and I have applied it.
This actually gave me the boost I needed and I fixed up all problems the use of the hook_form_alter() and now is working really great.
ATM HTMLArea is the only WISIWYG editor that will work with Drupal 4.7. I am not sure on the status of the others or how far off they are. I know that tinymce might be a little while as Matt is quite busy ATM, unless he has some kind soul make the change.