One thing to note is that hyphens don't exist in the DOM, and when the user copies something, the hyphens are not copied along (except if you manually insert soft-hyphens). In principle at least (and I've never fully tested that…).
Now, I don't disagree that having e.g code blocks display words with hyphens when none exist might look silly (‘back-ground’, uh). Otoh, if the <code>code</code> element is inline, as in this sentence, and the word contains a hyphen, it will split anyway (e.g. <code>linear-gradient</code>) if it happens to be at the end of the line; hyphen being a line-break opportunity in most browsers.
BTW, Eric, you may want to disable hyphenation in form controls (<code>textarea, input[type=text]</code>).
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