Back to 1): The type of bug I see most often is where conversation history seems incomplete, and I have trouble rolling back to or even finding a previous point that I am certain existed.
Git shares some features but I think Git was not made for the type of conversational rapid-prototyping LLMs enable. I don't want to be making commits every edit in some kind of parallel-git-state. Cursor's rollback and branching conversations make it easy to backup if a given chat goes down the wrong path. Reapply is tedious since it has to be done one edit at a time - would be nice if you could roll-forward.
I haven't put much thought into what else would be useful, but in general the most value I get from Cursor is simplifying the complex state of branching conversations.