CKEditor 4.0.1 empty P nodes even though fillEmptyBlocks = true

Using inline editing mode. I'm finding that CKEditor is not filling all paragraph nodes, even though config.fillEmptyBlocks = true.

If I type in an empty editor: "test" + CR + CR, I get the following:

<p>test</p>
<p>&nbsp;</p>
<p></p>

So I still need to do a Regex replace at the back end when edited HTML is submitted. Is this a bug in the current version due to be addressed?