Describe the bug
I clicked insert block, and selected the block with the cursor, then attempted to type hello but nothing happened.
To Reproduce
Steps to reproduce the behavior:
Expected behavior
I expected the inserter UI to dissapear and the word hello to show
Screenshots

Desktop (please complete the following information):
Additional context
I saw testgutenberg.com runs v3.3, so I tested on frontenberg which is 3.4 with the same results
I was not able to reproduce this error on Testgutenberg.com When I add block, paragraph, the flashing i beam is ready to enter text.
Chrome Version 68.0.3440.84 (Official Build) (64-bit)
Windows 7, Home Prem, SP 1
@abwdvm did you select the block though? Clicking insert then immediatley typing works, but I selected the block with my mouse cursor as shown in the screenshot
I get similar behaviour if I select a paragraph block with my cursor then attempt to type, nothing happens, I would expect instead to be moved into insertion mode with what I type appended to the end of the block
Note that when I say select, I'm not just clicking inside the block, I'm selecting the block. To do this you need to click on the periphery of the block, an easy way to do it is to click when the mouse cursor shows a hand for movement, or a pointer cursor ( as opposed to an caret/text cursor )
Tested and confirmed that I cannot interact with a block via keyboard while in drag-and-drop mode using WordPress 4.9.8 and Gutenberg 3.4.0 with Chrome 67.0.3396.99 on macOS 10.13.6 (59s).

Seen at http://alittletestblog.com/wp-admin/post.php?post=14134&action=edit running WordPress 4.9.8 and Gutenberg 3.4.0 using Chrome 67.0.3396.99 on macOS 10.13.6.
I updated step 2 from "Select the newly created paragraph block with the mouse" to "Click on the draggable handle" to help clarify.
Possibly related: #7114.
I think the fact that the draggable handle was invisible led to this kind of odd behavior/bug, as the user may have not been aware that the click happened in the draggable handle. Now that the draggable handle has its own icon within the block movers the expectations are clear: if you click on it, as with any other button, you'll lose focus on the block. With that in mind, I'm closing this.
@nosolosw my original issue was that if you selected a paragraph block then typed, nothing was typed. This issue with the dragging is just a subset of that problem. It's possible to select a block without using the draggable handle
@nosolosw For example, if I press tab to arrive at a block like this:

Typing does nothing, but I expect instead to see a caret appear and for what I type to become visible. Instead I have to either explicitly click, or tab through the entire toolbar. That's a lot of UI friction
Additionally, I clicked back to this github issue tab, and when I clicked back, and pressed tab, it went to the right hand sidebar.
Additionally, it's possible to click a non-draggable part of the inserter block, leaving the user in a situation where the block is selected but nothing can be typed:

Notice the lack of caret, and the missing selection highlight. Pressing tab brings it into focus. To do this, place the cursor above the block and move it upwards or downwards until the text cursor becomes a normal arrow cursor, and click.
I'd be fine with reopening but I see that you've already created a new one that is more general, so it makes sense to keep this closed.
Most helpful comment
I'd be fine with reopening but I see that you've already created a new one that is more general, so it makes sense to keep this closed.