I couldn't find an Airpath compass to dismantle, so I Wrote to Airpath and asked the question. Here is their reply.
I don't know if this will settle your argument, but basically you are both correct. The card assembly is balanced for the vertical component of the earth's flux lines based upon the surveyed strength by NOAA for a given latitude and hemisphere. A small weight is applied to level the display level, non-accelerated flight. The pendular design of the card assembly helps minimize (but not eliminate) the dip errors when turning and accel/decal environments. Hope this helps.
Gil Stone
President
Airpath Instrument Company
Sorry, dubbleyew eight, you are right.
MJ