Rewrites TPT quoting to a minimal and much more 'embedded' kind of quote. It isn't huge and it combines the reply function as well, also reducing markup.

magicaljs.js

/*jshint browser: true, jquery: true */
/*global GetQuote*/
function getSelectionHtml() { 
  var html = ''; 
  if (typeof window.getSelection != 'undefined') {
    var sel = window.getSelection();
    if (sel.rangeCount) {
      var container = document.createElement('div');
      for (var i = 0, len = sel.rangeCount; i < len; ++i) {
        container.appendChild(sel.getRangeAt(i).cloneContents());
      }
      html = container.innerHTML;
    }
  } else if (typeof document.selection != 'undefined') {
    if (document.selection.type == 'Text') {
      html = document.selection.createRange().htmlText;
    }
  }
  return html;
}
GetQuote = function (PostID, Element, Username){
  $('html, body').animate({scrollTop: $(document).height()}, 200);
  $('#AddReplyMessage.EditPlain').insertAtCaret('@' + Username + '!' + PostID + '\n<em>&gt;' + getSelectionHtml() + '</em>');
  $('#AddReplyMessage.EditWYSIWYG').tinymce().execCommand('mceInsertContent',false, '@' + Username + '<br />\n<em>&gt;' + getSelectionHtml() + '</em>');
};

tptquote.js

// ==UserScript==
// @name       The Powder Toy quotes rewrite
// @namespace  http://github.com/boxmein
// @version    0.1.2
// @description Rewrites the quote function to do an entirely different thing. See if it works! :D
// @match      http://powdertoy.co.uk/*
// @copyright  2013+, boxmein
// ==/UserScript==
// Install me here: http://userscripts.org/scripts/show/164774

/*global jQuery,$,GetQuote,Element */
/*jshint browser:true, multistr:true */

// Here's where the magic happens. See additional file. 
var magicaljs = "function getSelectionHtml(){var a='';if('undefined'!=typeof window.getSelection){var c=window.getSelection();if(c.rangeCount){for(var a=document.createElement('div'),b=0,d=c.rangeCount;b<d;++b)a.appendChild(c.getRangeAt(b).cloneContents());a=a.innerHTML}}else'undefined'!=typeof document.selection&&'Text'==document.selection.type&&(a=document.selection.createRange().htmlText);return a} GetQuote=function(a,c,b){$('html, body').animate({scrollTop:$(document).height()},200);$.get('/Discussions/Thread/Post.json?Type=Raw&Post='+a,function(c){1==c.Status?($('#AddReplyMessage.EditPlain').insertAtCaret('@'+b+'!'+a+'\\n<em>&gt;'+getSelectionHtml()+'</em>'),$('#AddReplyMessage.EditWYSIWYG').tinymce().execCommand('mceInsertContent',!1,'@'+b+'<br />\\n<em>&gt;'+getSelectionHtml()+'</em>')):($('#AddReplyMessage.EditPlain').insertAtCaret('@'+b+'!'+a+'\\n<em>&gt;'+getSelectionHtml()+'</em>'),$('#AddReplyMessage.EditWYSIWYG').tinymce().execCommand('mceInsertContent',!1,'@'+b+'!'+a+'<br />\\n<em>&gt;'+getSelectionHtml()+'</em>'))})};";
// Very simple element injection.
var js = document.createElement("script");
js.text = magicaljs;
document.body.appendChild(js);