Basically "Undos" become actions that you can later "Undo". It's very weird. I accept that it means you never loose a change but it does feel a bit like boiling the ocean to produce some salt ... that said, it's an "alternative approach" that does have its merits. I like that about emacs, it challenges your assumptions and makes you think! As much concept art as a tool in itself.
- Paste 5 time the same line - Press undo 3 times: removes 3 lines - Move the cursor by one character - Press undo 2 times: instead of removing 2 lines it adds back 2
It would be better if the two operations (undo/redo) would be distinct.