So reading this meta question, it sounds like a real edit will always take precedence over a suggested edit, when it comes to edit conflict resolution, even if the suggested edit is better. This also seems to be the case from my personal experience right here.
My profile says that I suggested an edit on this question but no where in the edit history do you see my edits. My edit was after revision 3 and conflicted with revision 4 which was made by a 10k+ user. He only added a line asking for explanation. I actually suggested fixes with the grammar, and other issues with the question. So I would think that my edit was more substantial.
So can we:
Get an explanation of how this process actually works. Ironically this question, does nothing for explaining how edit conflicts are resolved.
If the comment made by @animuson on the answer to this question here is correct. Then can we get a better system in place to take care of conflicts between substantial suggested edits, and real edits made?
Allow users to see the review of what happened to their suggested edit on the edit history screen. How you currently find it is not very intuitive.
I don't know about everyone else, but if I put in the effort to suggest a good edit, and then see that effort go to nothing, I don't particularly want to expend that effort again.
EDIT: To everyone, thanks for answering, but the question I linked to was simply an example, what I really want to ask about and what I am suggesting is, point number 2 and 3 above.