This should work using text() function to escape the html from the user input :
$('textarea').on( 'blur' , function()
{
var textarea = $( this );
textarea.next('span').text( textarea.val() );
});
with the following markup :
<textarea></textarea>
<span></span>
The demo here : http://jsfiddle.net/UDfmm/
EDIT : If you want to keep the line breaks then do this
$('textarea').on( 'blur' , function()
{
var textarea = $( this );
var span = textarea.next('span');
var content = span.text( textarea.val() ).html();
var content_with_br = content.replace(/\n\r?/g, "<br />");
span.html( content_with_br );
});
Demo here : http://jsfiddle.net/UDfmm/3/