Anyone else think that line looks a little funny? Due to the bad screen shot it appears solid but I think it's actually dotted. Either way, I understand small cancel link, Fitts Law and all.
Only an issue on meta, where we underline links in that way, so [wontfix] .. but, you bring up a good related point, in that the link DOES extend all the way across for no reason. So I'll look at that part of it.
Edit: you're right, this is kind of a minor bug, so changing to completed.. in addition to reducing the size of the cancel link, I also made the edit button itself use the pointer icon.