Mine still does that, I just press and hold on the spacebar and can move the cursor around, are you sure its no longer available on your phone?

This was changed, and it is pretty easy to think the feature got removed.

When it was pressure-sensitive, you could push harder anywhere on the keyboard. But now that it’s tap-and-hold, it only works on the space bar. Most other pressure-sensitive actions just got replaced with tap-and-hold with no changes. But doing that on any other key brings up letter-specific accents, so they moved it down to spacebar.

It also used to be faster. Now you have to wait, but before it was pressure sensitive. You could trigger it instantly with more pressure. Edits were so fast and convenient, but now it’s a slight pause each time

Doesn’t work If the keyboard doesn’t have a spacebar - happens with numeric input. IIRC the old 3D Touch version worked on any key.