Hey Mike,
I think Rob is right - the green highglight is quick diff which should show up for any edit you do, not just jsp.
By you going to disable Text Editors->Annotations you removed all *annotations*. Annotations here in the general sense of the word, not Java Annotations.
By unchecking "text as" you disabled *All* the annotations show in the list of "Annotation types".
Thus if you do not want this green line for quick diffs its better to do what Rob suggested and disable Quick Diff.