Machinbird;
The control loops would develop phase lags and could even drive oscillations the wrong way!
I respect your knowledge on this subject, but my reasoning doesn't support the theory, simply because each actuator is either in pilot input or auto mode, and positional feedback from the control surfaces should avoid the hysteresis problem alluded to.
Or are you suggesting that the "hunting" results in effective loss of control as the hydraulics "stall"?