You know what? I was ready for bullshit and you actually gave a compelling answer :P Yeah, that's a bummer, but there aren't that many instances of that drawback (it's bitten me a couple times maybe in many years?) and on the other hand text mode gives a lot of convenience like being able to use it from SSH and other niceties.
Anyways, I don't think such behavior is inherent to "the console", only Linux's particular implementation (i.e. it's tty's fault) which admittedly is pretty outdated and relies a bit too much on control characters.
IMHO the original question still stands:
> What would a GUI bring to this that isn't possible in the console?
In my experience text mode brings a lot that GUIs don't, and not the other way around.
Plus it's easier to make a GUI wrapper for a console program than a console wrapper for a GUI program.
Visual editors assign various non-editing tasks to command sequences as well. Pycharm moves the cursor around parenthesis with C-m for example, Cmd-M minimizes windows, and Cmd-I does formatting.
Not being destructive of user input, for starters.