Instead of a fixed default, perhaps a dropdownbox of choices, with the default choice being the PowerShell default could be in put above the command text entry window.

Or, you can do what I do and put $ErrorActionPreference = "SilentlyContinue" as the first line of the script.

natestovall of course adding it manually is a possibility, just as adding set -e to the top of each bash script would be. But the fact is, Jenkins effectively adds set -e to the top of each bash script without even asking you, so the most consistent thing to do would be to use the PS equivalent which is $ErrorActionPreference = "SilentlyContinue". A dropdown (with stop as the default) would be even better, of course...

created pull request for this: https://github.com/jenkinsci/powershell-plugin/pull/7

This is a great idea, in most cases, you don't want scripts to go on when they encounter failures. I'd rather have false positive abortions than false negatives. 

Just had the same issue. Script expected some argument, which I didn't pass in. Jenkins still shows green.

Could we have this implemented in the pipeline step rather than just the plugin? From what I understand the powershell plugin is not supported in pipelines and so we still can't get around this issue. Pipeline carries on when calling Import-PowerShellDataFile on an invalidly formatted file when it should absolutely stop. Having to write try-catch blocks every time we try something where errors aren't handled properly and can't set ErrorActionPreference within the pipeline itself

With powershell plugin 1.4 the "stopOnError" feature has been added to the PowerShell class, but this feature is not availlable to the pipeline.
powershell=true could only be set in the the Build-Step for Free Style projects.
With the pipeline you already need to set

powershell script: "\$ErrorActionPreference='Stop';'your script code'"

before each scripts.
Regards.