So I wrote a noweb prettyprinter, dpp .
Some punctuation is prettyprinted as well.
Indentation and line-breaking are not messed with. It is off by default to avoid nasty surprises for people running their programs through dpp for the first time. It compresses all whitespace not at the beginning of a line to one space, and expands whitespace between code and comments to four characters. Basically, it undoes hand-formatting that looks good when monospaced but bad in a proportional font. This way you can include a makefile or test data in your .nw file without having it printed like C code.