Ubuntu - Use vim not vi, vim.tiny, or Nano

Ubuntu Desktop ships with vi and nano by default. I find it frustrating that when pressing the arrow keys to navigate around in edit mode results in inserting characters instead. Also, the text is not 'color-coding' and will all just show up as your terminals normal text color as seen here:

As a solution, I have been installing vim.tiny and using that instead of vi. This results in the arrow keys acting like arrow keys and not inserting characters. Unfortunately, you still don't receive any color coding on your text. However, if you install vim (not vim-gnome or any other vim-*), then not only do you get the arrow keys to act how you want, but you also get the color coding as shown here (same file):