> In X11/synaptics I can make movements as fine as rolling my fingertip in place on the touchpad, or drawing a minuscule circle, and it will pick it up. Libinput on the same touchpad does nothing
Just tried that on my Dell XPS on sway (wayland, thus libinput), and rolling the tip of my finger on the touchpad allows me to move the cursor in single-pixel increments on an unscaled 4k display. :/
Maybe this is a libinput issue specific to your touchpad type?