Surprised that there isn't any explicit discussion of
why dexterity is so hard, beyond sensory perception. One of the root causes (IMHO the biggest one) is that modeling contact, ie the static and dynamic friction between two objects, is extremely complicated. There are various modeling strategies but their results are highly sensitive to various tuning parameters which makes it very hard to learn in simulation. From what I remember, the OpenAI Rubik's Cube solver basically learned across a giant set of worlds of many different possible tuning parameters for the contact models and was able to generalize okay to the real world, in various situations.
It seems most likely that this sort of boring domain randomization will be what works, or works well enough, for solving contact in this generation of robotics, but it would be much more exciting if someone figures out a better way to learn contact models (or a latent representation of them) in real time.