Ctrl-x e in zsh is '_expand_word'. The function you are talking about is 'edit-command-line', which is not loaded or bound to any key by default in zsh. You have to load it manually.
python -m SimpleHTTPServer textarea {
font-family: monaco, courier, monospace;
width: 500px;
...
}
Web designing mistake, wrong choice of units. Depending on user's choice of font width, text will wrap inside the text area and not produce the expected result. 'width: 40em' would be a lot more sensible and produce the expected results.