New list block (with items being separated blocks) is very difficult to use with keyboard

[zzap]

Description

Hello, I assume we got this new version in Make sites. I write Team updates for Docs team every week and this week was frustrating using list block.

1 problem - I needed 3 keystrokes of arrow down to navigate to next list item in order to edit it.

2 problem - copy/paste nested list from previous post's editor resulted in subitems being merged in one list subitem. Hitting Enter to move each subitem in new line (and hopefully make it subitem) resulted in weird indentation as you can see in screenshot and video.

Step-by-step reproduction instructions

1 problem:

1. Create list.
2. Place cursor in the first item.
3. Navigate down with arrows in order to edit each item.

2 problem:

1. Create list.
2. Indent one of long items (sublist)
3. Place cursor anywhere before the last word in that item
4. Press Enter to create new item from last part

Screenshots, screen recording, code snippet

As you see in video, I have to keystroke down arrow 3 times to start editing next list item. Also, note the nested list above the "Past 7 days" heading.
https://www.awesomescreenshot.com/video/11319672?key=3829ab606bd4bc2a7b9546678013f738

Environment info

This is happening in Make blogs where, I assume, we have the latest Gutenberg plugin version. I believe part of the problem might be in these changes: #40991

Please confirm that you have searched existing issues in the repo.

Yes

Please confirm that you have tested with all plugins deactivated except Gutenberg.

No

[ellatrix]

The arrow navigation issue has been fixed separately.

Could you share a video of the other problem? I'm not sure how to reproduce it.

For the paste issue, could you share the content you're pasting?

[ellatrix]

Would love some more info on the remaining issues. Thank you!