I guess the culprit is Universal Control in Monterey. To make mouse and keyboard available to other devices, Apple re-wrote/modified the drivers or added additional latency for stability reasons.
For on-device operations this is clearly counterproductive.
I'm just surprised not more people are disturbed by the additional delay.
Universal Control: That's what the world needs! I was waiting for that like for a wart on the butt. Sounds good on some Apple events! But now you can't work properly with a standalone iMac? Apple? Anybody at home?
I don't want to work on my imac anymore! It's no fun anymore.The pointer is imprecise, he jumps, sometimes too fast, sometimes too slow. The pointer acceleration seems to work randomly. Sometimes the pointer jumps 5mm, sometimes 5 cm.
Aaaarrrrrgh! APPLE! What have you done? Shame on you.
Enough people are reporting in other forums (reddit, apple america, apple europe, etc.). BUT, however, many users are really satisfied with everything that apple puts them in front of their noses. Ah, the pointer isn't accurate? Maybe the next update. Again? Maybe the next update. Again? Maybe the next update. And so on ...
The next type of costumer is "new in apples world". They doesn't know anything about the good quality before. They're accepting this. And last but not least ... the hardcore windows users (like me, 10 years before). Where is the registry? There must be a registry. Ok, I'll install 28 3rd-party apps and then I'll mix them and test it for month in my life. No change? Where is the registry? Anyone how founds the registry? (attention: humor).
There is a big group of customers at the beginning: Hmm. I'll waiting until others solve the problem. Why should I do anything? Sorry, but there a thousands of costumers with the same problem. Not only the M1 iMac. The iMac mini has a lot of problems with bluetooth too (with "our problem on top"). Did you hear anything? Nope ...
I had a call with Apple Care. OMG! Where are the experts? Sometimes I'm thinking, that they have only actors and a script like "did you power on you device?", "ok", "did you ...". After 15 minutes "and what did you say is the problem now?" Every AI-Bot is more professional in coming to the point (the quest). Apple has a lot of experts, but you can't talk with them. Hiding?
OK, to the point: Today, I'll delete Monterey. Full. Complete. Hole structure. Newest Big Sur over USB is coming in. I'm absolutely sure, that after my first login, everything is working charming und perfect. Apple as we love Apple. I'll give you a fast response.
BUT ... this wouldn't solve any problem in Monterey! And this could't solve any problems in the new macOS! Apple is having a new focus and WE have to follow it. If this (for me) MASSIVE problem isn't gone soon, I'll fire the iMac out of the windows and (attention about that wording) ... I'll go back to windows (the badest day in my life).