I use vi daily, but much prefer BBEdit. The way I integrate them has evolved over time (see previous posts here, Useful subversion shell aliases, and BBEdit Gems (which appears to be down right now). In particular, I no longer configure BBEdit directly in ~/.subversion/config.

The new improved integration uses BBEdit whenever it's available (I'm in front of the Mac), and falls back to the default (vi) when I'm connected via ssh.

First, I created ~/bin/edit.sh to hand off to BBEdit. I use edit.sh whenever BBEdit is appropriate:

# Edit in BBEdit, for programs that don't support arguments in $EDITOR.
bbedit --wait --resume "$@"

Next, I configured my bash profile to prefer edit.sh when I'm not connected via ssh (which means when I am in front of the Mac or using ARD/VNC), as my EDITOR and PAGER. My profile doesn't automatically determine whether to use bbdiff for Subversion, because I sometimes find it necessary to use non-BBEdit diff for Subversion (there are cases where the svn-to-bbedit handoff doesn't work well, and I have ended up editing scratch files instead of the real files, for instance). Here's the snippet that does this, from my profile:

if [[ ! $SSH_TTY ]]
  if [ -x ~/bin/edit.sh ]
      export EDITOR=~/bin/edit.sh
    else export EDITOR=vi
  if [ -x /usr/bin/bbedit ]
    then export PAGER="col -b | bbedit --clean --view-top"
else export EDITOR=vi
fi # [[ ! $SSH_TTY ]]

In addition, I set up aliases for reviewing output from the svn command, based on Bob's suggestions. I just copy and paste one or more lines from svn output to review changes in BBEdit:

alias  A='bbedit --wait'
alias AM='bbedit --wait'
alias  C='bbedit --wait'
alias  D='true'
alias  G='svn diff --diff-cmd bbdiff --extensions "--resume --wait"'
alias  I='true'
alias  M='svn diff --diff-cmd bbdiff --extensions "--resume --wait"'
alias  R='svn diff --diff-cmd bbdiff --extensions "--resume --wait"'
alias  U='bbedit --wait'

I update and then review status so often that I built my own TLA:

alias sus='svn update