It might be unnecessary on iPad, but personally I find it easier, less effort and more pleasant to use than showing loupe when you tap on the cursor, probably because I don't like to cover the text with my finger and I have to stretch my thumb to cursor position. You can still long touch on the cursor to move it or on area above the cursor.
I do agree that It break what people already expect. What I would like to see if they will value it more as they use it or dislike it. Let's try it for a while.
I also plan to introduce a small shortcut bar on iPhone, similar to shortcut bar on iPad. It will contains only Insert, Text, Link and Format button. Probably we can let user swipe on this bar to move the cursor around and disable new long touch behaviour.