Jason, There's currently no way to edit MIDI events other than scrubbing and using cut, copy and paste. One thing (which I believe Kevin was suggesting) is to change the behavior of the insertion point following playback. Pressing Control-n toggles this behavior and there's a checkbox in the Operations tab of the Preferences. When insertion follows playback, when you press the space bar to pause, the insertion point stays in its place. Otherwise, it jumps back to the original start point. Hopefully, that makes sense. Let us know if that solves the issue.
Best, Slau