Comment 4 for bug 9974

The problem becomes a pathological usability problem with the trashcan in the lower right corner of the screen - you cannot tell if you are really dragging things in the trash or on the desktop or on the panel.

What about drawing the icon some pixel down and to the right of the pointer during drag? This gives a not-so-unnatural feeling and leaves the pointer small and visible. I think this "trick" has been used in many places since amiga 500.