Wrap each line of selection in tag

That's a valid solution until the lines you want to wrap are separated by blank lines.  If you select all the lines (including blanks inbetween), it will wrap the blank lines too.

Example...

line 1

[blank line]

line 2

[blank line]

line 3

becomes ...

<p>line 1</p>

<p></p>

<p>line 2</p>

<p></p>

<p>line 3</p>

what we want is ...

<p>line 1</p>

[kept blank]

<p>line 2</p>

[kept blank]

<p>line 3</p>

That's how TM did it.  FYI.

Still love Sublime Text but would LOVE to see this functionality added.

(e)

Yes, Espresso does this too. It was so efficient for me to be able to sweep through the text and use ctr-cmd-shift-w to add and change the tags only on the paragraphs/lines.

In ST2, I've found that by holding down the Cmd key, I can select individual lines or paragraphs and use ctrl-shift-w to do this on my selections.

You could just select it all, wrap it in paragraphs, and then do a search for <p></p> and delete them. That way you get the desired blank lines in only a few seconds!