As the title says, if you use the following code in a post it works as expected. However, posting the same thing as a message on someone's profile doesn't. Also, I didn't test it on here because I didn't want to post a random message on somebody's profile. I don't think I use any addons that would cause it, though, and I use the default style.
I should also note that the same thing happens on 1.1 and 1.2.
Because only your actual status msgs are limited to 140, if you respond to a comment on one of your statuses you are not limited to 140 I would guess (but can be wrong) that the only reason an actual status message is limited and not the rest is because the rest don't show up on your member card which has a limited amount of space.