I posted here:
a discussion on modifying the htmlarea integration to be able to use dragmath's <Initital> xml tags which allows use with asciimathml expressions and avoidance of squarebracket issues with nth roots.
If there is interest I will upload the edited dlg_ins_smile.php and Latex.xml files as well as the initial work on an ASCIIMathML.xml file.
I am still not sure how to manage escaping brackets, dollar sign, etc in the current wiki and forum, so the posting referenced above does not reflect the doubledollar signs where they have been removed (use of double slashes avoided interpretation but also seemed to result in the display of the double slashes.... ) from php file and inserted into the Latex.xml file. My apologies (and I hope that eventually there will be a consistent way to present text without interpretation by the wiki or forum php - I am told that nwiki already support something like <nowiki></nowiki> which I suppose could be used with <code></code>)
We now have this working on our moodle and have started a map for asciimathml which inserts backticks instead of doubledollars and avoid square brackets.