How to Configure Your Steam Controller: FPS
I was wrong
DO NOT LOWER CONTROLLER SENSITIVITY!
Lowering controller sensitivity is akin to putting a gaming mouse on a low DPI setting: you're losing precision by discarding information.
This is what you should be doing for maximum precision/smoothness:
Set the in-game sensitivity to its minimum and then increase controller sensitivity to taste.
Credit to Major Gnuisance for the correction.
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