> they simultaneously feel crippled and limited by their lack of editing / iteration ability.

Yeah. They're not "videos" so much as images that move around a bit.

This doesn't really look any better than those Midjourney + RunwayML videos we had half a year ago.

>Has anyone come across a solution where model can iterate (eg, with prompts like "move the bicycle to the left side of the photo")? It feels like we're close.

Google has a model called Phenaki that supposedly allows for that kind of stuff. But the public can't use it so it's hard to say how good it actually is.