Relative to setting stdin to non-blocking...

Won't this break at least curl's telnet support when used as default
setting for everything?

Besides the different methods of setting a 'socket' to non-blocking
which is handled in the library with Curl_nonblock(). This introduces
a completely different portability problem. obviously stdin is not a
socket it is a 'special' file descriptor.

Since in order to use this for doing some client-side tunnelling the
http server must meet some specific requirements and option
--no-buffer must be used as well, why isn't all this behind a
non-default curl option?

My 2 cents.

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