Hi David
What is documented is the treatment of escape (i.e. '\') in literal text in sql and not specifically the side effect when using data controls.
If you are using a data control like the datawindow to update the database with text, the effect is hidden from you and not specifically documented. When you have disabled bind variables the datawindow creates syntax which resembles a sql statement with a literal text string which unfortunately invokes this escape character interpretation (something apparently the SA user groups have requested changed for some time). If you use bind variables with the control, you bypass the literal string escape processing as the data is not passed in a literal string.