This looks like a pretty good fix to me. We had talked about adding a restriction before the 3 point hitch, but the problem was that without giving the excess fluid somewhere to go, it ends up going over the relief valve. This type of valve was discussed, I think, but nobody had taken the plunge and tried it.
Reducing the flow rate to the lift cylinder will certainly help, I've noticed that if the loader is lifted at the same time (feathering it is enough) the hitch is much smoother.
Mine will be a little bit different, since I have the remote valve in between the loader valve and the 3 point valve. There may be enough room to one side of the seat to mount the flow divider.
Mine has a newer version of the PCV, I may try checking the adjustment on that before I go this route, but it sure does look like an improvement over mine.
Thanks, Jeff, for both trying this and also taking the time to show us the results. I assume you're in Canada (Princess Auto), but I don't suppose you're in NS??
Sean