This has the effect that you’re shifting the list rather than the item. And yet your actual controls are anchored to the item.
On a touch device, to shift an item from the middle of a list to the top:
• With traditional drag-and-drop: press in the middle (long press or regular press on a movement grabby), drag upwards, release.
• With this: tap in the middle, on the item, then press anywhere, drag down, release.
It’s uncomfortable. The logical entity you’re manipulating is the item, but you’re having to do it by interacting with the list, and if your drag starts on the item it’ll achieve the opposite of what you want.
It may also interact a little poorly with retracting browser chrome, which is very common on mobile. I’d definitely say it does on Firefox for Android with top address bar.
As for other platforms… ouch. With a precise touchpad it’s bizarre and uncomfortable but functional (though the scroll direction thing will probably hit even harder and be even more frustrating); with a mouse with indexed scrolling it’s fairly fundamentally unusable.
All up, although it’s an interesting direction to explore, I don’t like it at all at present, and doubt the scrolling aspect can be salvaged. Direct manipulation is good.
I agree, this doesn't make sense. Also how can you place the item when there is no space to put it? If you want to mimic reality you should: 1) drag and drop outside of the list the item you want to move putsode the list 2) drag and drop the item in the place you want to put your selection 3) place your pick in the empty space 4) quietly discard the item you dislodged 5) wait for people to point out you are now missing one item 6) drag and drop the person under the carpet 7) repeat until no criticism