At least for editing text on the iPhone the key to moving the cursor is holding down the space bar: the keyboard transforms into a trackpad for cursor placement. This doesn’t really help for selecting text though, but it makes typing longer responses much more bearable.
Yes, it does. For passwords or any other field an app defines as sensitive, Apple keyboard takes over and you can't change from it, but other than that you share every keystroke with Google. Your only option is disabling location.
