I just tried with kitty, and konsole, on linux and selecting text within a tmux split works perfectly. So does copy-paste (use Ctrl-Shift-C instead of Ctrl-C).
I just tried this in kitty and it didn’t work
IMO this setting belongs with the application, and especially with tmux and nvim supporting this natively, you don't really need the terminal itself to implement some potentially fallible heuristic. For example with iTerm if you accidentally drag outside the pane boundary, the selection immediately expands to include both the panes, which is not ideal.