For those of you that are adventurous, I should mention that you CAN improve it a bit by reducing the tappet clearance on the 3-point position control valve. You won't get rid of it entirely, but it can be made somewhat better. Mine wasn't bad enough to go that route, so I simply set it back where I found it in the end.
Between the WSM setting and the factory setting there is a "zone" of adjustment where the 3pt actually will hunt up and down by itself, violently in the middle of the zone and more gently at the outer ends. Once you're out of the area where it hunts, the jump is very small, and gets larger as you approach factory settings.
I thought about leaving it just barely into the "stable" zone to reduce the amount of jump, but I wasn't sure if it would stay there or begin to hunt slightly over time. By that time I was getting fed up with removing the top cover and tweaking the valve, so it got set back to original.
Going from memory.. the factory gap is 0.045", WSM recommends 0.004-0.008". It seems to me up to about 0.016" it was smooth but was held dynamically by fluid pressure, at about 0.020" it started to gently hunt up and down. 0.025" was violent hunting, then it stabilized again by 0.035 but was jerky in very small increments. I briefly considered 0.035" and leaving it, but as I said, I was sick of seeing the inside of a Kubota transmission.
Sean