This morning WordPress.com users woke up to a handful of new features including a linking feature that is something I’ve wanted to see in WP for quite some time. The idea now is that you have a nice little tool to assit you in linking to content that you’ve already created inside your WordPress by simply searching using keywords:
These new features are part of WordPress 3.1, which is still being tested, but as a developer you can grab via SVN, or just fire up your WordPress.com site to see it now.
Raanan Bar-Cohen 
I took a look at the linking feature a few days ago and I must say, that I love it.
But I thought this feature was designed to be able to use a relative linking by post-id?
You know to ease the process of moving to an other domain or changing the permalink structure. But than I found out, that this new feature is only a helper to write HTML and it doesn’t include any custom tag (like [link post=1023 alt=”foobar”] ) ?
So is this really only a dictionary to look up old posts?
Hey @Marv — ya, looks like it hard codes the links using the linking tool. If you are on self-hosted WP, you may want to check out a recent plugin from Alex King that will “create internal links via shortcode so that they will always remain up to date if the page/post titles are updated or the URLs are changed”: http://alexking.org/blog/2010/11/21/wordpress-internal-link-shortcode