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Oops, I forgot the last two questions:
> Maybe we need better command-line control to override the defaults?
We already have -u to switch all stdio to unbuffered. This issue proposes to make stderr line-buffered/unbuffered by default, since it's less surprising than fully buffered.
> Are there precedents e.g. in Bash flags?
Well, `man bash` doesn't appear to say anything about stdio buffering.