To whom this may concern, and thank you to those that have read this:
I've noticed a strange change in behavior on how the Visual editor works in the 3.1 version, and I have reinstalled to verify.
Previously, I could reduce the levels of a listed item by pressing enter on the item. Now, when I press enter on a blank listed item, it does nothing.
If I want to reduce the level, I must use the icons.
Not sure if this was ever an expected behavior or not, but I did grow accustomed to it, and I have actively used it since I started using WordPress last year.
Here's an example:
<ul> <li>level 1 <ul> <li>Level 2</li> <li>Level 2</li> <li></li> </ul>
Normally, I'd be able to press enter again at the last list item, and it would reduce the indent back to level 1. Now it just sits at level 2 and does nothing.