No, there are many tags listed when you change the dropdown. Those tags are those most commonly used in attacks. Filtering all tags we get false positives if, as is your case, some editors add other tags (p tag for instance).
Wont this also basically turn off XSS script checking and not provide protection from XSS attacks?
Yes, sorry. That what I mean.
Also there is no "Filter All Tags" drop down. There is a "Strip All Tags" drops down, is this what you meant?