"ECHO all" is ignored for interactive input, and has been for a very long
time, though possibly not for as long as the documentation has claimed the
opposite.  Fix that, and also note that empty lines aren't echoed, which
while dubious is another longstanding behavior (it's embedded in our
regression test files for one thing).  Per bug #12721 from Hans Ginzel.

In HEAD, also improve the code comments in this area, and suppress an
unnecessary fflush(stdout) when we're not echoing.  That would likely
be safe to back-patch, but I'll not risk it mere hours before a release
wrap.