I agree it's not perfect. In particular it's a little weird to highlight the link text blue since it's not what you interact with. Mostly just makes it easy to see and then find the link button, also useful if you are planning to publish a document so that you can see where the links will be in published document.

One feature that I do like about this design is it's pretty generic. For example in the future I could imagine detecting dates and then insert a button after the detected date to interact with calendar. I think the general idea of inserting simple interaction button in text can be quite useful.