While moving a block, it is quite difficult to insert the block at the right position. In fact, sometimes it is impossible to know whether e. g. you are going to insert the block into a group or above/below the group.
It would help a lot to see all borders of the hovered block and its inner blocks, highlighting and naming the block where the moved block will be inserted.
Here is just a quick ugly draft. I think it would be nicer to use dashed lines for the non selected block.

cc @paaljoachim who made https://github.com/WordPress/gutenberg/issues/20955 along the same lines.
I actually throw some code together that does this, but the issue I found is that our 'drop zones' actually sit outside of our block borders when dragging to the first or last position. The implementation was also a lot more complex than I'd anticipated. I just recorded this demo of the branch:

So I think a good first step would be refining how the drop zones and borders are shown.
Great to see that there is already some progress! In fact, your description of the positions of the drop zones sounds "interesting", it explains the feeling I sometimes had and it seems to be important to be faced soon. :)
I would just like to highlight, that naming of block/drop zones - as described above - would be very helpful, too. But one step after another... :)
This is a great idea. I've seen some page builder plugins do this, and I feel silly for not suggesting something like this earlier.
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This is a great idea. I've seen some page builder plugins do this, and I feel silly for not suggesting something like this earlier.