PHP EXEC is also known to not work. There was a change to the way that posts and pages are processed.
The Exec-PHP and WP-Exec plugins do work. With your current code, Exec-PHP would be a drop-in replacement.
Per the Plugin Compatability list,
http://codex.wordpress.org/User:Matt/2.0_Plugin_Compatibility
RunPHP doesn’t work under WP2.0 but Exec-PHP does.
If you’re not running a lot of PHP inside of pages and want to upgrade now, you can just switch plugins.
Okay.
When I poked my head into the beta, the only way to turn off the RTE was through the user profile page. So not conducive to switching back and forth to use quicktags during writing.
What about part B of my question: Is there an API that quicktag plugin writers can use to add a new button to the RTE to provide the same functionality wether the RTE is on or off?