I could see this being really useful for editing lists that are longer than the page. The example that immediately comes to mind is reordering a playlist on YouTube Music, which currently requires dragging to near the screen edge and trying to convince the list to scroll while you still hold on to the item you're trying to move.

Yessss this exactly! Moving songs up/down in large playlists would be fun with this concept. I wish that was a thing for music apps.