so, KDE (11rc1) removed the double-quotes around %c in .desktop files and now lxpanel won't run my games
e.g., this used to work: Exec=bomber -caption "%c"
but now that's: Exec=bomber -caption %c
which doesn't work (the application fails as if %c gets replaced by nothing )
"Field codes must not be used inside a quoted argument, the result of field code expansion inside a quoted argument is undefined."
So it seems the kde devs are correct there.
The standard (same page) also says that "Implementations must take care not to expand field codes into multiple arguments unless explicitly instructed by this specification.This means that name fields, filenames and other replacements that can contain spaces must be passed as a single argument to the executable program after expansion." So the double-quotes serve no useful purpose that i can see, anyway.