This is a behaviour that Geoff explained some time back. From memory it has something to do with the way PLP's work. I think it was one of those "it's a bug, but very low on the priority list" things.
Gary is absolutely right here. I don't think it would take much to have cancel bypass the JS validation for the form -- it's just laziness ;)
But the way the COAPI works, it expects an object to exist before applying an edit method. Hence we get this situation where when you create an object and don't want it you have to delete it; cancel just stops the edit handler.
-- geoff http://www.daemon.com.au/
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