libsvn_wc/merge.c:detranslate_wc_file EOL text conflicts

I've been looking at some spurious text conflicts during merge that are
caused because we attempt to merge files with different line endings.
The script at the end of this mail shows the problem, it's a very simple
merge and it doesn't change the EOL style.

The problem is detranslate_wc_file. It gets the current EOL style for
the file and then "translates" the file from the current style to the
current style. That makes no sense. I think it should be translating
from current style to repos style. The hack below fixes the conflict.

Index: subversion/libsvn_wc/merge.c
===================================================================
--- subversion/libsvn_wc/merge.c (revision 1069761)
+++ subversion/libsvn_wc/merge.c (working copy)
@@ -254,7 +254,7 @@
 
       SVN_ERR(svn_subst_copy_and_translate4(source_abspath,
                                             detranslated,
- eol,
+ "\n",
                                             TRUE /* repair */,
                                             keywords,
                                             FALSE /* contract keywords */,

But does cause 3 FAILs in merge_tests.py:
FAIL: merge_tests.py 34: conflict markers should match the file's eol style
FAIL: merge_tests.py 35: handle eol-style propchange during merge
FAIL: merge_tests.py 110: dav skelta mode can cause spurious conflicts

I'm stuggling to understand this. I don't understand the documentation
for detranslate_wc_file. Is it supposed to convert to repos EOL or
local EOL? 1.6 gets this merge wrong as well, has merge been broken for
so long?

#!/bin/sh -e
svn=svn
svnadmin=svnadmin
svnmucc=svnmucc
rm -rf repo wc
url=file://`pwd`/repo
svnadmin create repo
svn mkdir -mm --parents $url/A/B
svnmucc -mm -- put - $url/A/B/f << EOD
L1
L2
L3
EOD
svnmucc -mm propset svn:eol-style CRLF $url/A/B/f
svn cp -mm $url/A $url/X
svnmucc -mm -- put - $url/A/B/f << EOD
L1xxx
L2
L3
EOD
svnmucc -mm -- put - $url/X/B/f << EOD
L1
L2
L3xxx
EOD
svn co $url/A wc
svn merge ^/X wc

-- 
Philip