Yes that means you can't use Geany to create empty files, but if you add the exception then you can't use Geany to create files with one newline.
I don't think that's right: if you manually enter one newline, Geany will keep it, so you'd just have to insert the newline manually.
However, I really don't feel strong about that. I understand it can be nice in some corner situations to be able to save a totally empty file (e.g. removing all content to get a truly empty file); but also agree with @elextr that adding special cases to features makes them more complex to follow (imagine the next issue: "Geany doesn't insert a newline in an empty file even when 'insert newline at end of file' is checked" :grin:). So… whatever you guys think is fine, as you seem to feel more strongly about this.