Once again, a very bizarre default setting that had me stumped for weeks. It turns out that all of the inboxes for all of my email addresses were set to use custom templates, and these all had the value %blank. Also, in the main Kmail setup, the standard templates were also all set to %blank, so I had to click 'default' to get the correct values filled in. Now quotes work as in previous versions of kde. I never set these that way; it is how they installed when I did a clean install of f10 alpha back in September and then it upgraded itself to f10 in November.