This is still true, even today. One can reproduce the dynamic hit targets demo today, on the latest iOS 27.2.

I reproduced the example in the video in the Xcode simulator to verify it before I posted my comment. T, I, M, then with my cursor on the rightmost edge of W, registers as E instead.

Here is a video of reproduction in Xcode, just now: http://lynndotpy.xyz/its_iphone_timw.mov

One can also reproduce similar behavior, using an Apple Pencil on an iPad.

(I am almost certain one can also reproduce this with some certainty with a capacitive stylus, but I don't have one with a fine point on hand at the moment to verify.)