Actually, on Firefox 2, the middle-click behaviour was more sensible - with middlemouse.paste set to 'true', middle-clicking in text boxes would paste text, but not give this annoying (and modal) message. Middle-click to paste is useful across X-based apps, so disabling it is unwise, but with Firefox moving away from modal boxes altogether, this "URL is not valid" box shouldn't appear at all.
Actually, on Firefox 2, the middle-click behaviour was more sensible - with middlemouse.paste set to 'true', middle-clicking in text boxes would paste text, but not give this annoying (and modal) message. Middle-click to paste is useful across X-based apps, so disabling it is unwise, but with Firefox moving away from modal boxes altogether, this "URL is not valid" box shouldn't appear at all.