I was unable to reproduce it with current tree. It seems it was already fixed by the following commit

 $ git log -1 aa53a1

 commit aa53a1e92b60400a6bc2e66249533ede08ffeb49
 Author: Tomas Strachota <tstrachota>
 Date:   Wed Nov 2 18:59:29 2011 +0100

    cli - support for multiline description of commands

 $ git diff aa53a1^..aa53a1 src/katello/client/cli/base.py

diff --git a/cli/src/katello/client/cli/base.py b/cli/src/katello/client/cli/base.py
index f6dfaf7..e266f10 100644
--- a/cli/src/katello/client/cli/base.py
+++ b/cli/src/katello/client/cli/base.py
@@ -76,9 +76,19 @@ class KatelloCLI(object):
         lines = [self.usage_line,
                  'Supported Commands:']
         for name, command in sorted(self._commands.items()):
-            lines.append('\t%-14s %-25s' % (name, command.description))
+            lines += self.__build_command_usage_lines(command)
         return '\n'.join(lines)
 
+    def __build_command_usage_lines(self, command):
+        lines = []
+        desc_lines = command.description.split("\n")
+
+        lines.append('\t%-14s %s' % (command.name, desc_lines.pop(0)) )
+        for l in desc_lines:
+            lines.append('\t%-14s %s' % (" ", l) )
+            
+        return lines
+
     def add_command(self, name, command):
         """
         Add a command to this command line tool

# VERIFIED

Following scenario does displays --provider now.

---
katello -uadmin -padmin product create
Usage: katello [options]

katello: errors:
1) Option --provider is required; please see --help
2) Option --name is required; please see --help

checked against following packages:
---
katello-0.1.207-1.git.0.1fbec20.el6.noarch
katello-cli-0.1.49-1.git.0.6962a71.el6.noarch
pulp-0.0.263-1.el6.noarch
candlepin-0.5.8-1.el6.noarch