Awesome to have this early feedback on the presentation mode support. This is something we’ve been working as a great extension.
With respect to your questions:
One q: Is showing the text cursor intentional?
This behavior is currently intentional. We blur the canvas but show you the original cursor location. It might make sense to completely remove the cursors in this mode so feedback is welcome. Additionally we hide canvas based comment markup and all collaborative cursors (no more distractions!).
The toolbar is also draggable/movable so you can position it to a spot out of the way. You’ll notice it fades to be almost invisible when you you’re not hovering over it too.
Another q: could I specify hidden sections (or even whole folders)
Not currently supported (this thing is literally hot of the Coda presses!) but something we can considering adding.
It doesn’t seem to be letting me type
When you enter presentation mode, you are in presentation navigation mode so moving around using arrow keys (up, down, left and right) navigates to the next/previous sections. Space will also advance to the next section too. The idea here is that you’re “presenting” as a primary activity so navigation around your document sections is paramount. In order to go into edit mode, simply click on the displayed canvas and your cursor will reactivate (start flashing). You can go back into navigate mode by clicking on the next / previous section buttons on the floating toolbar.
Hope this helps - would love to hear more feedback as you gain experience using this feature within your docs.