I know about it, but that's a second action (moving it after tapping), or a more difficult one (moving it all the way there via the spacebar touchpad). Most of the time if a tap would put the cursor where I tapped, it'd already be there.

Edit: I just discovered now that if you long-press on the text to place the cursor, you get a little magnified view and it does let you place the cursor in the middle of a word. So that's probably the most efficient method currently available.