If you want Vim to show display lines, not the actual, physical lines, that's not possible. It also doesn't make sense, since no movement command except gj / gk works on display lines, and you cannot use them in :[range].
If you want wrapped/broken lines to actually be new lines, why don't you actually make them new lines?
gqq reformats the current paragraph using the textwidth settting
To get automatic formatting going:
set fo=tcrwa textwidth=80
Now, whenever you're type your text will wrap around. On auto-wrap, a trailing space is left on the previous line indicating it isn't the end of a paragraph yet.
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Vim line numbers on display lines
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