Form API 'markup' element is incorrect

$form+tab allows Form API elements to be added. If "markup" is selected the following code is added:

  $form['value'] = array(
    '#value' => 'value',
    '#prefix' => '<div>',
    '#suffix' => '</div>',
  );

This is incorrect. It should be

  $form['value'] = array(
    '#markup' => 'value',
    '#prefix' => '<div>',
    '#suffix' => '</div>',
  );

Note '#markup' instead of '#value'. This changed in Drupal 7. Compare with Drupal 6.

Also the typed value does not replace value in $form['value'] correctly.

Pull request 34 on GitHub fixes this.