This is how I play it usually. I also played with the USB cable unplugged, there's not much difference.
After 1.92, the control is definitely more sensitive. The improvement is most noticeable in sudden movement/gestures. For other more gradual movements, I didn't have any trouble at all. Now I need to adjust to the quicker response. Still not a big problem although I wish Sony includes a sensitivity adjuster and self-diagnose in XMB itself.
Also after the update, I completed the sea serpent level (after 8 tries in several sittings). The enemy dragons are harder to see here because:
(i) The mantas may obstruct the "little" dragons, and
(ii) Enemies are spread (much) further apart compared to the bridge level. The bridge and buildings served as a focal point for all in previous levels, and here it's just an open coast.
Because there is no radar, I need to do quick patrols of an area to make sure it is cleared. Dragon vision can't see through opaque objects
. Here, Factor 5 should have at least an audio/visual cue to tell me if I can move on (or report the number of dragons left in the vaccinity).
All in all, flying a dragon is a hectic and violent ordeal (with all the targeting, 180 degree turns and swoops).
The serpents are awesome to watch. I had to replay the level most of the time because I couldn't figure out how to slay them. I am still not quite sure yet; will have to replay this level later to find out more. Still a 7 so far, but I begin to like the game more.