I'd be very interested to get more discussion on this specific issue, of handling mouse events well in SVG.
The particular example felt contrived, in that I might just apply a class HasPointerEvents to every element and change the pointer events off for everyone except the drag & the dropped element. But I suspect there may be some other real mouse handling topics in SVG that really are interesting & challenging, & would love some discussion on that. Kind of iwld that the internet doesn't have a ton of obvious forums to go hash out tech topics like this... Post a random question/challenge to stackoverflow & cross your fingers.