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Type text: abc Place cursor after a. Press Del. Press Ctrl-Z (Undo). Result: Undo performed correctly, but cursor position is changed: it's now after b. It's wrong. At least it's not as in most of standard text editors.
Well, I think this behavior is intentional. Although I agree that people are likely to have different preferences over this and what you request is definitely a valid behavior. > At least it's not as in most of standard text editors. Maybe. I tried Eclipse and it behaves the same as Netbeans (plus it selects the text that the undo action placed back to the document, which btw looks like a nice little feature). I also tried gedit and it behaves the way that you described. So, I think it's really hard to say what is correct or better.
There is a technical problem that currently the undo queue only stores model modifications not the view's changes i.e. it only stores document mutations but not caret movements at all (you can see the same behavior if you run swing's demos Notepad.jar). This would have to be designed and changed e.g. store initial and target caret offset (not direct references to caret etc.) so that undo/redo would work properly. Marking for later.
NetBeans.org Migration: changing resolution from LATER to WONTFIX