Is it possible to upload a user file and pass its content to a textarea using javascript/jquery?
Yeah, it's possible.
I think this open-project should be all you need. It's a JQuery-based file uploader. http://blueimp.github.com/jQuery-File-Upload/
Once you have it uploaded, store it in wherever you store it (i.e. your database) and get it back via a JQuery ajax query.
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