The wording in the 5th paragraph of FAQ 187 is currently as follows:
Your email should be sent in plain text format (instead of rich text or HTML format) in order for it to post correctly. There is no way to turn on the "Don't auto-format" feature when posting by email. If you would like to keep your entry from being automatically formatted, you can use the <lj-raw> tag in your email entry.
When I was looking at it today I was extremly confused because the second sentence says that you cannot turn on the "Don't auto-format option" but the next sentence says "If you wish to turn it off, use <lj-raw>". At first I didn't understand what it meant and then jc explained that you cannot turn on the option, but instead you can use <lj-raw> as a "workaround". I don't have a rewording proposal, but maybe someone else could come up with one.