When using newlines in <div> tags, the <p> tags will wrap the wrong content. See https://sv.wikipedia.org/w/index.php?oldid=32139841#Mall:Mottagare_av_Sonningpriset for a demo and https://sv.wikipedia.org/w/index.php?oldid=31966993 where this actually causes a problem in a real template.
Yes, known issue with doBlockLevels in the core parser. There is no easy fix for this right now. Something that might be fixed as part of work we are doing to unify behind a single parser.