What's wrong with the one given? If my cursor moves because some other user makes some other text bold, that doesn't sound like a desirable experience?
As for the last question, I think the later posts will get to that.
In complex models it is symptomatic of a larger issue with complexity in CRDTs; the post was already quite long and I didn't want to repeat any more of the research I'd linked to.
The post is a good introduction to OT and CRDT, but is very light on actual trade-offs and seems to end with a gut-feeling conclusion, when the title promised “trade-offs between”.