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I think there's some additional weirdness in Selection.extract around partial selection and text splitting (looking at the code, it seems not all the cases are covered), but I think this is more correct than before. Basically, if only a single node is selected and the selection is collapsed, we don't need to worry about splitting or anything - just return that node.
EDIT:
Changing the way extract works caused some tests to fail. Basically, I think this was a "load-bearing bug". There was some weird behavior around toggling links with collapsed Selections (it would usually make the one side of the text a link, which is not consistent with how other editors work). I fixed this by basically making toggling links on a collapsed selection do nothing. In the future, we could improve this by inserting a link at that spot, like GDocs and Quip do, but that behavior actually seems weird to me.
Fixes #2614