We'd like to show the item you're currently moving in the "move" dialog in order to avoid having the user to re-orient herself when the dialog opens (see rationale below).

The item currently moved is shown like this (see attachment 1):

• The item has the mouse hover highlighting (light gray). It's not selected, but has the keyboard focus.
• The item actually can't be selected.
• Its icon is replaced with a placeholder icon (the dotted rectangle in the wireframe)

Note that the wireframe actually shows an even more advanced state of the "move" dialog, which also reveals the root node, offers to duplicate instead of moving the item and features menu buttons to cover all way to move an item (inside, above or below another item). Those are handled in separate tasks (see linked issues).

Design rationale behind this decision

We show the "move" dialog when a user clicks on a "move item" action. This is a rupture in a user's flow, but one we accept as the "move" dialog is the one option that works across devices. We can mitigate the effect of such a rupture by aligning the view presented by the "move" dialog and the view the user had when clicking on the "move" action.

Update:
After discussions, the solution for this ticket meets these requirements:

• Reveal moving items in move dialog
  + Expand tree to those nodes
• Style moving items
  + Gray highlighting like other items
  + Blur them (add opacity)