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Aha! I did some code exploration of sage/misc/html.py and discovered the <sage> tag, so you can just write something like this in a a cell:

%html
We can see that <sage>x</sage> is the key result

and it will do sage_eval() and format the result in math mode, so you get nice inline math display of the formula contained in x. That is exactly what I need - is that <sage> tag documented anywhere?