I find that the "wrap mode" is misplaced in the preferences dialog, as a
matter of fact preferences are something that you are supposed to set once
to meet your need and then modify only rarely. Instead wrap mode is
something I happen to change quite often, depending on which kind of
document I am editing: I keep it off by default (for code etc), but when
I'm writing simple text I turn it on.
This looks like a normal use case, so I think that having the toggle in a
more accesible place makes sense; the most obvious place would be the Edit
menu or, if the option is changed to be 'per document' instead of global,
the Documents menu.