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Blender (3D modeling & animation software) implements this cool thing when rotating/resizing objects: if the mouse cursor moves out of the window it reappears on the other side (enabling resizing/rotating ad infinitum).
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I think a better way to implement that feature would be a mechanism for programs to temporarily enable off-screen mouse cursors. This should also track the position where the cursor would be if it had been clipped to the screen boundary as normal, and immediately return the cursor to that position when the off-screen mode ends. Note that the OS returns the cursor, not the application, so applications can't abuse this mechanism for repositioning the cursor.
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> But if it's windowed then it should be impossible.

I worked on several apps for the visually impaired that automatically move the mouse cursor to different UI elements in the front-most application, regardless of the window state. It’s a good reminder that “impossible” often just means “I haven’t accounted for that use case yet.”

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If it's part of the OS's standard accessibility framework then it's acceptable. The important point is that applications shouldn't be able to arbitrarily move the mouse in situations when it's unexpected.
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> The important point is that applications shouldn't be able to arbitrarily move the mouse in situations when it's unexpected.

That is quite a different statement from "It should be impossible." What should be impossible is for the OS to prevent this type of usage when it is clearly useful. Beyond accessibility, I use these features to automate testing of native macOS GUI apps.

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