A nice idea, with smartphones so prevalent touch gestures have become more of an intuitive responsive to "how I do this?". I've used keyboard and mouse much longer than touch screens, and yet the other day found myself thinking "yeah but I don't have two cursors so how do I manipulate that?" (forgot the exact scenario).
Still, I don't think placement on the spacebar is the way to go. Do people not use hotkeys anymore? "Quick editing" has existed probably longer than I've been alive, arrow keys move cursor, shift selects, ctrl modifier moves cursors words rather than charactors at a time, home/end move to home/end of a row, ctrl+x = cut ctrl+c = copy ctrl+v = paste, etc. A bunch I forgot and can't test right now, because despite being far easier to use that grab bars and other touch text editing 'innovations' hotkey editing rarely works in android - even with a physical keyboard.